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Doing the Most Good for Your 
Company and Your Cause 

Best practices 
from Hewlett-Packard, Ben & Jerry's, 
and other leading companies 



S. C. Johnson Distinguished Professor <>f International Marketing 

K <■ 1 1< >tr;i School of N 1 ; 1 1 1 3 ■ u < - ■ 1 1 a - ■ 1 1 



Corporate Social 

Corporate Social 

Doing the Most Qood for 
Your Company and Your Cause 

Philip Kotler 


Nancy Lee 


John Wiley & Sons, Inc. 

Copyright © 2005 by Philip Kotler and Nancy Lee. All rights reserved. 

Published by John Wiley & Sons, Inc., Hoboken, New Jersey. 
Published simultaneously in Canada. 

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Library of Congress Cataloging-in-Publication Data: 

Kotler, Philip. 

Corporate social responsibility : doing the most good for your company 
and your cause / Philip Kotler and Nancy Lee. 
p. cm. 
ISBN 0-471-47611-0 (cloth) 
1. Social responsibility of business. 2. Social marketing. 3. 
Corporations — Charitable contributions. 4- Corporate image. I. Lee, 
Nancy, 1932- II. Title. 
HD60.K67 2005 

658.4'08— dc22 2004020375 
Printed in the United States of America. 

10 987654321 


Acknowledgments vii 
Introduction ix 

1 The Case for Doing at Least Some Good 1 

2 Corporate Social Initiatives: Six Options for Doing Good 22 

3 Corporate Cause Promotions: 

Increasing Awareness and Concern for Social Causes 49 

4 Cause-Related Marketing: 

Making Contributions to Causes Based on Product Sales 81 

5 Corporate Social Marketing: 

Supporting Behavior Change Campaigns 1 14 

6 Corporate Philanthropy: 

Making a Direct Contribution to a Cause 144 

7 Community Volunteering: 

Employees Donating Their Time and Talents 1 75 

8 Socially Responsible Business Practices: 
Discretionary Business Practices and 

Investments to Support Causes 207 




9 Twenty-five Best Practices for Doing the Most Good 

for the Company and the Cause 235 

10 A Marketing Approach to Winning Corporate Funding 

and Support for Social Initiatives: Ten Recommendations 262 

Notes 277 

Index 297 


The authors want to acknowledge the following people for sharing 
their stories and perspectives regarding corporate social initia- 
tives, and in many cases, taking the time and effort to complete 
surveys, confer with other colleagues and partners involved in these ini- 
tiatives, research historical files and proof copy. We thank you. 

Aleve, Rich Ehrmann at Aleve and Kelly Gifford at the Arthritis 

American Express, Anthony Mitchell 

AT&T Broadband/Comcast, Liz Castells-Heard at Castells & Asociados 

AT&T Wireless, Richard Brown 

Athena Water, Trish May 

Avon, Laura Castellano 

Ben & Jerry's, Chrystie Heimert 

Best Buy, Linda Wilkinson at Best Buy and Tricia Conroy at e4partners 

Body Shop, Steve Mclver 

British Airways, Kate Walton at UNICEF UK 

Chiquita, Michael Mitchell 

Cisco Systems, Nayeem Sheikh 

Coca-Cola, Carol Martel 

ConAgra Foods, Nancy Peck-Todd 

Cone Inc., Carol Cone 

Costco, Sheri Flies 

Crest, Tricia Montgomery 

Dell, Bryant Hilton 

Dole, Amy Myrdal and Marcy Reed 

Fannie Mae, Lesia Bullock 

FedEx, Pam Roberson and Ron Wong 

Ford, Kristen Kinley and Andy Acho 

General Electric, Debra Wexler 

General Mills, Chris Shea and Marybeth Thorsgaard 




General Motors, David Jerome and Ann Kihn 

Hewlett-Packard, Maureen Conway 

Home Depot, Park Howell at Park and Company 

IBM, Stanley Litow and Robin Willner 

Intel, Gary Niekerk 

Johnson & Johnson, Andrea Higham 

Kenneth Cole Productions, Kristin Hoppmann 

Kraft, Sally Maier and Michael Mudd 

LensCrafters, Susan Knobler and Pam Kraemer 

Levi Strauss & Co., Jeff Beckman and Stuart Burden 

Lysol, Ruth Apgar at Reckitt Benckiser 

McDonald's, Joanne Jacobs 

Microsoft, Joanna Fuller 

Motorola, Rich Guimond 

Mustang Survival, Elizabeth Bennett at Seattle Children's Hospital & Re- 
gional Medical Center 
New York Times Company Foundation, Rita Wnuk 
Nike, Jill Zanger 
Nordstrom, Deniz Anders 
Northwest Airlines, Carol Hollen 

Pampers, May Stoeckle at P&G and Andrea Furia at the National Institute 

of Child Health and Human Development 
PARADE, Christie Emden 
PETsMART, Jennifer Pflugfelder 
Premera Blue Cross, Dana Hurley 

QVC, Patricia McLaughlin at the American Legacy Foundation 
REI, David Jayo 

Safeco, Rose Lincoln and Wendy Stauff 
7 -Eleven, Margaret Chabris 
Share Our Strength, Bill Shore 

Shell, Debbie Breazeale at Shell and Garry Snowden at Conservation Vol- 
unteers Australia 
Silk, David Kargas for White Wave 
Starbucks, Sue Mecklenburg 

Subway, Libby Puckett at North Carolina Heart and Stroke Prevention 

and Steve Hanhauser at MarketSmart Advertising 
Target, Diane Carlson 
Timberland, Kate King and Celina Adams 
Wal-Mart, Wendy Sept, Chad Graham, and Karen Wess 
Washington Mutual, Sheri Pollock and Deanna Oppenheimer 


If you are reading this introduction, chances are you work in your 
company's department for community relations, corporate communi- 
cations, public affairs, public relations, environmental stewardship, 
corporate responsibility, or corporate citizenship. But it is just as likely 
that you are a marketing manager or a product manager, have responsi- 
bility for some aspect of corporate philanthropy, or are on staff at a cor- 
porate foundation. On the other hand, you may work at an advertising, 
public relations, or public affairs firm and be looked to for advice by your 
corporate clients in the area of corporate social initiatives. And you may 
be the CEO. 

If you are like others in any of these roles, we think it's also quite 
possible that you feel challenged and pulled by the demands and ex- 
pectations surrounding the buzz for corporate social responsibility. It 
may be as fundamental as deciding what social issues and causes to 
support and making recommendations on which ones to reject. It may 
involve the grace and finesse often required for screening potential 
community partners and figuring out how much or what to give. It 
most likely requires rigor in selling your ideas internally, setting ap- 
pealing yet realistic expectations for outcomes, and then building 
cross-functional support for implementation plans. You may be con- 
cerned with how to integrate a new initiative into current strategies 
and to handle the extra workload. Or perhaps you are currently on the 
hot seat to evaluate and report what happened with all that money 
you gave last time to a cause, or gave as a result of retooling practices 
implemented to save the planet last year. 

If so, we have written this book for you. More than 25 of your col- 
leagues in firms including Ben 6k Jerry's, IBM, Washington Mutual, 
Johnson 6k Johnson, Timberland, Microsoft, The Body Shop, American 
Express, and Starbucks have taken time to share their stories and their 
recommendations for how to do the most good for your company as well 




as for a cause. You'll read about their hard lessons learned and perceived 
keys to success. 

We have a common agenda. We all want a better world and are con- 
vinced that communities need corporate support and partnerships to 
help make that happen. A key to bringing about this support is for cor- 
porations to recognize and realize opportunities for bottom-line benefits, 
including corporate goodwill. 

Even though this book has been written primarily for those in for- 
profit corporations and their communication agencies and foundations, 
it can also be beneficial to those in nonprofit organizations and public 
sector agencies seeking corporate support and partners for social initia- 
tives. It offers a unique opportunity for you to gain insight into a corpora- 
tion's wants and needs and can better prepare you to decide what 
companies to approach and how to listen before you ask. The final chap- 
ter, just for you, presents 10 recommendations that will increase your 
chances they will say yes. When you recognize and practice the market- 
ing role inherent in this process, your target markets will appreciate it. 

Our sincere hope is that this book will leave corporate managers and 
staff better prepared to choose the most appropriate issues, best partners, 
and highly leveraged initiatives. We want it to help you engender inter- 
nal enthusiasm for your recommendations and inspire you to develop 
blue ribbon initiatives. And, perhaps most important, we imagine it in- 
creasing the chances that your final report on what happened is both 
credible and incredibly good news for your company and the cause. 

Corporate Social 


The Case for Doing 
at Least Some Good 

For many years, community development goals were philanthropic activ- 
ities that were seen as separate from business objectives, not fundamental 
to them; doing well and doing good were seen as separate pursuits. But 1 
think that is changing. What many of the organizations that are repre- 
sented here today are learning is that cutting-edge innovation and compet- 
itive advantage can result from weaving social and environmental 
considerations into business strategy from the beginning. And in that 
process, we can help develop the next generation of ideas and markets and 
employees. 1 

— Carly Fiorina, Hewlett-Packard, at the 
Business for Social Responsibility 
Annual Conference, November 12, 2003 

This is a practical book. It is intended to help guide the decision 
making of corporate managers, executives, and their staff, be- 
sieged on a daily basis with requests and proposals for support of 
social causes. These requests seem to come from everywhere and 
everyone for everything: from nonprofit organizations, public sector 
agencies, special interest groups, suppliers, potential investors, stock- 
holders, politicians, even colleagues and board members; for issues 
ranging from health to public safety to education to community 



The Case for Doing at Least Some Good 

development to protecting animal rights to sustaining the environ- 
ment. And the pressures to respond strategically seem to be building, 
with increased internal and external expectations to address economic 
responsibilities as well as social ones — to do good for the corporation as 
well as the cause. This book is also intended to help guide evaluation 
of program outcomes, as there are similar increased pressures to prove 
the business and social value of allocations of scarce resources. 

The book distinguishes six major types of corporate social initiatives 
and offers perspectives from professionals in the field on strengths and 
weaknesses of each in terms of benefits to the cause and benefits to the 
company. These initiatives include ones that are marketing related (i.e., 
cause promotions, cause-related marketing, and corporate social market- 
ing) as well as ones that are outside the typical functions of marketing 
departments (i.e., employee volunteering and socially responsible busi- 
ness practices). The focus is on assimilating recommended best practices 
for choosing among the varied potential social issues that could be ad- 
dressed by a corporation; selecting an initiative that will do the most 
good for the social issue as well as the corporation; developing and im- 
plementing successful program plans; and evaluating program efforts. An 
underlying assumption of this book is that most for-profit corporations 
will do some good, for some cause, at least some of the time. 

This opening chapter sets the stage with a few definitions to estab- 
lish a common language for discussions in future chapters. It highlights 
trends and statistics that support the assumption that corporations have 
an increased focus on social responsibility; describes the various per- 
ceived factors experts identify as fueling these trends; and concludes 
with current challenges and criticisms facing those attempting to do the 
most good. 


A quick browse of web sites for the Fortune 500 reveals that good goes 
by many names, including corporate social responsibility, corporate citi- 
zenship, corporate philanthropy, corporate giving, corporate community 
involvement, community relations, community affairs, community de- 
velopment, corporate responsibility, global citizenship, and corporate 
societal marketing. 

For purposes of focused discussion and applications for best practices, 

What Is Good? 


the authors prefer the use of the term corporate social responsibility and of- 
fer the following definition: 

Corporate social responsibility is a commitment to improve 
community well-being through discretionary business practices and 
contributions of corporate resources . 

A key element of this definition is the word discretionary. We are not 
referring here to business activities that are mandated by law or that are 
moral or ethical in nature and perhaps therefore expected. Rather, we 
are referring to a voluntary commitment a business makes in choosing 
and implementing these practices and making these contributions. Such 
a commitment must be demonstrated in order for a company to be de- 
scribed as socially responsible and will be fulfilled through the adoption 
of new business practices and/or contributions, either monetary or non- 
monetary. The term community well-being in this definition includes hu- 
man conditions as well as environmental issues. 

Others have offered several distinct definitions of corporate social 
responsibility (CSR). One from the World Business Council for Sustain- 
able Development reflects the council's focus on economic development 
in describing CSR as "business' commitment to contribute to sustainable 
economic development, working with employees, their families, the lo- 
cal community, and society at large to improve their quality of life." 2 The 
organization Business for Social Responsibility defines CSR as "operat- 
ing a business in a manner that meets or exceeds the ethical, legal, com- 
mercial, and public expectations that society has of business." This 
definition is somewhat broader as it encompasses business decision mak- 
ing related to "ethical values, legal requirements, as well as respect for 
people, communities, and the environment." 3 

We also use the term corporate social initiatives to describe major ef- 
forts under the corporate social responsibility umbrella and offer the fol- 
lowing definition: 

Corporate social initiatives are major activities undertaken by a 
corporation to support social causes and to fulfill commitments to 
corporate social responsibility. 

Causes most often supported through these initiatives are those that 
contribute to community health (i.e., AIDS prevention, early detection 


The Case for Doing at Least Some Good 

for breast cancer, timely immunizations), safety (designated driver pro- 
grams, crime prevention, use of car safety restraints), education (literacy, 
computers for schools, special needs education), and employment (job 
training, hiring practices, plant locations); the environment (recycling, 
elimination of the use of harmful chemicals, reduced packaging); com- 
munity and economic development (low-interest housing loans); and 
other basic human needs and desires (hunger, homelessness, animal 
rights, voting privileges, antidiscrimination efforts). 

Support from corporations may take many forms, including cash con- 
tributions, grants, paid advertising, publicity, promotional sponsorships, 
technical expertise, in-kind contributions (i.e., donations of products 
such as computer equipment or services such as printing), employee vol- 
unteers, and access to distribution channels. Cash contributions may 
come directly through a corporation or indirectly through a foundation it 
has established to focus on corporate giving on behalf of the corporation. 

Corporations may be sponsoring these initiatives on their own (such 
as the New York Times Company Foundation support for journalism and 
journalists) or in partnership with others (as with ConAgra Foods and 
America's Second Harvest). They may be conceived of and managed by 
one department within the corporation, or by a team representing multi- 
ple business units. 

As noted earlier, we have identified six major types of corporate so- 
cial initiatives, which are the focus of this book, with a chapter dedi- 
cated to a detailed review of each initiative. An overview of these 
initiatives is presented in Chapter 2. 


In the last decade, directional signals point to increased corporate giv- 
ing, increased corporate reporting on social responsibility initiatives, the 
establishment of a corporate social norm to do good, and an apparent 
transition from giving as an obligation to giving as a strategy. 

Increased Qiving 

According to Giving USA, charitable giving by for-profit corporations has 
risen from an estimated $9.6 billion in 1999 to $12.19 billion in 2002. 4 
Cone/Roper's Executive Study in 2000, exploring cause initiatives 

What Are the Trends? 


from the corporate perspective, found that 69 percent of companies 
planned to increase future commitments to social issues. 5 (For more than 
10 years, the well-known Cone/Roper tracking studies have been instru- 
mental in providing ongoing research on attitudes toward corporate in- 
volvement in cause initiatives. Their research includes surveys of 
consumers, employees, and executives. Their benchmark study of con- 
sumer attitudes, conducted in 1993, as well as results from subsequent 
studies, is described later in this chapter. 6 ) 

Increased Reporting 

According to KPMG, a U.S. professional services firm, a 2002 survey of 
the Global Fortune Top 250 companies indicated a continued increase in 
the number of American companies reporting on corporate responsibility. 
In 2002, 45 percent of these companies issued environmental, social, or 
sustainability reports, compared with 35 percent in their 1999 survey. 7 

Major avenues for this reporting include corporate annual reports 
with special sections on community giving and, increasingly, the publi- 
cation of a separate annual community giving report. Starbucks, for ex- 
ample, in 2003 published its second annual Report on Corporate Social 
Responsibility and, in an opening letter from the Chairman and CEO, 
emphasized that this report is a way "to provide transparency on our 
business practices, measurements of our performance, and benchmarks 
for future reports." It further explains that Starbucks took additional 
measures in the second year of reporting "to assure our stakeholders that 
the information in this report is accurate by engaging an independent 
third party to verify its contents." 8 

A review of Fortune 500 web sites also indicates that a majority now 
have special reports on giving, with sections typically labeled "Corporate 
Social Responsibility," "Corporate Citizenship," "Community Develop- 
ment," "Community Giving," or "Community Involvement." Many of 
these sections provide lengthy detail on topics like annual giving 
amounts, philanthropic priorities, major initiatives, employee volun- 
teerism, and sustainable business practices. 

Establishment of a Corporate Social Norm to Do Qood 

Within these annual reports and on these web sites, there are also consis- 
tent and similar messages from CEOs, signaling that commitments to 


The Case for Doing at Least Some Good 

corporate social responsibility have entered the mainstream of corporate 
dialogue as a must-do, as indicated in the following examples: 

• American Express: "Good Works = Good Business. . . . Not only is 
it appropriate for the company to give back to the communities in 
which it operates, it is also smart business. Healthy communities are 
important to the well-being of society and the overall economy. 
They also provide an environment that helps companies such as 
American Express grow, innovate, and attract outstanding talent." 
(Harvey Golub, Chairman and CEO, and Kenneth Chenault, Pres- 
ident and Chief Operating Officer, 2000) 9 

• Dell: "Dell is a global company that delivers products and services 
to more than 190 countries. We have more than 40,000 employ- 
ees who live and work on six continents. That's why it's important 
that we provide technology to all communities that we call 
home." (Michael Dell, Chairman and CEO, July 2003) 10 

• Fannie Mae: "Fannie Mae and the Greenlining Institute share a 
common mission. We are both devoted to improving the quality 
of life in underserved communities. We both are working to bring 
more opportunities to people and places inside the old red lines. 
And we both believe in the power of housing." (Franklin D. 
Raines, Chairman and CEO, April 2003) 11 

• Ford Motor Company: "There is a difference between a good 
company and a great company. A good company offers excellent 
products and services. A great company also offers excellent prod- 
ucts and services but also strives to make the world a better place." 
(William Clay Ford, Jr., Chairman of the Board and CEO) 12 

• Kellogg: "There are many measures of a company's success. The 
most obvious, of course, are profitability and share value. A com- 
pany may also be measured by its ability to change with the times, 
or develop innovative products. These elements are all vital to 
Kellogg Company. But there is another important measure that 
we hold ourselves accountable for — our social responsibility." 
(Carlos M. Gutierrez, Chairman and CEO, 2003) 13 

• Hewlett-Packard: "I honestly believe that the winning companies 
of this century will be those who prove with their actions that 
they can be profitable and increase social value — companies that 

What Are the Trends? 


both do well and do good. . . . Increasingly, shareowners, cus- 
tomers, partners, and employees are going to vote with their 
feet — rewarding those companies that fuel social change through 
business. This is simply the new reality of business — one that we 
should and must embrace." (Carly Fiorina, Chairman and Chief 
Executive Officer, November 2003 ) 14 

• McDonald's: "Social responsibility is not a program that begins 
and ends. Acting responsibly has always been a part of who we 
are and will continue to be the way McDonald's does business. 
It's an ongoing commitment." (McDonald's CEO, Jim Can- 
talupo, CEO, 2003) 15 

• Nike: "The performance of Nike and every other global company in 
the twenty-first century will be measured as much by our impact on 
quality of life as it is by revenue growth and profit margins. We hope 
to have a head start." (Phil Knight, Chairman and CEO, 2001) 16 

A Shift from Obligation to Strategy 

In a seminal article in the Harvard Business Review in 1994, Craig Smith 
identified "The New Corporate Philanthropy," describing it as a shift to 
making long-term commitments to specific social issues and initiatives; 
providing more than cash contributions; sourcing funds from business 
units as well as philanthropic budgets; forming strategic alliances; and 
doing all of this in a way that also advances business goals. 

One milestone Smith identified that contributed to this evolution 
was a Supreme Court decision in the 1950s that removed legal restric- 
tions and unwritten codes which up to that time had restricted, or at 
least limited, corporate contributions and involvement in social issues. 
Subsequently, by the 1960s most U.S. companies began to feel pressures 
to demonstrate their social responsibility and established in-house foun- 
dations and giving programs. 17 

One of the next milestones Smith cited was the Exxon Valdez oil spill 
in 1989, which brought into serious question the philanthropy of the 
1970s and 1980s, where corporations tended to support social issues least 
associated with their line of business, give to a variety of causes, and turn 
over management of their giving to separate foundations. When Exxon 
then needed access to environmentalists for expertise and support, man- 
agement was "without ties to environmental leaders nurtured by the 


The Case for Doing at Least Some Good 

foundation." 18 A final milestone that Smith identified was the emer- 
gence and visibility of models in the 1990s such as one used at AT&T 
that proposed a new view of the role of a corporate foundation and its re- 
lationship to the for-profit arm. Its perspective was that not only should 
philanthropic initiatives of the foundation support business objectives 
but that business units, in return, should provide support for philan- 
thropic activities in the form of resources such as marketing expertise, 
technical assistance, and employee volunteers. 19 

David Hess, Nikolai Rogovsky, and Thomas W. Dunfee suggest that 
another force driving this shift is the new "moral marketplace factor," 
creating an increased importance of perceived corporate morality in 
choices made by consumers, investors, and employees. They point to 
several examples of marketplace morality, including "investors choosing 
socially screened investment funds, consumers boycotting Shell Oil be- 
cause of its decision to sink the Brent Spar oil rig, and employees' desires 
to work for socially responsible firms." 20 

The following section contrasts the more traditional approach to 
corporate philanthropy with the new strategic approach in terms of best- 
practice issues of selecting, developing, implementing, and evaluating 
corporate social initiatives. 

The Traditional Approach: Fulfilling an Obligation 

Prior to the 1990s, decisions regarding the selection of social issues to 
support tended to be made based on themes reflecting emerging pressures 
for "doing good to look good." Corporations would commonly establish, 
follow, and report on a fixed annual budget for giving, sometimes tied to 
revenues or pretax earnings. Funds were allocated to as many organiza- 
tions as possible, reflecting a perception that this would satisfy the most 
constituent groups and create the most visibility for philanthropic ef- 
forts. Commitments were more short-term, allowing the organization to 
spread the wealth over a variety of organizations and issues through the 
years. Interestingly (given where we are today), there was more of a ten- 
dency to avoid issues that might be associated with core business prod- 
ucts, which might be perceived as self-serving, and to steer clear of major 
and often controversial social issues such as AIDS, judging that these 
were best handled by those with expertise in governmental or nonprofit 
organizations. Decisions regarding issues to support and organizations to 
sponsor were also more heavily influenced by preferences (and wishes) of 

What Are the Trends? 


senior management and directors of boards than by needs to support 
strategic business goals and objectives. 

When developing and implementing specific initiatives, the rule of 
thumb might have been described as to "do good as easily as possible," 
resulting in a tendency to simply write a check. Most donors were satis- 
fied with being one of many corporate sponsors, as visibility for efforts 
was not a goal or concern. And because it would require extra effort, few 
attempts were made to integrate and coordinate giving programs with 
other corporate strategies and business units such as marketing, human 
resources, and operations. 

In terms of evaluation, it appears little was done (or asked for) to es- 
tablish quantifiable outcomes for the business or the social cause; the ap- 
proach was simply to trust that good happened. 

The New Approach: Supporting Corporate Objectives as Well 

As noted earlier, Craig Smith described how in the early 1990s, many 
turned to a new model of corporate giving, a strategic approach that ulti- 
mately impacted what issues corporations supported, how they designed 
and implemented their programs, and how they were evaluated. 

Decision making now reflects an increased desire for "doing well and 
doing good." We see more corporations picking a few strategic areas of 
focus that fit with corporate values; selecting initiatives that support 
business goals; choosing issues related to core products and core markets; 
supporting issues that provide opportunities to meet marketing objec- 
tives, such as increased market share, market penetration, or building a 
desired brand identity; evaluating issues based on their potential for pos- 
itive support in times of corporate crisis or national policy making; in- 
volving more than one department in the selection process, so as to lay a 
foundation of support for implementation of programs; and taking on is- 
sues the community, customers, and employees care most about. 

Developing and implementing programs in this new model looks 
more like "doing all we can to do the most good, not just some good." It is 
more common for managers to make long-term commitments and to offer 
in-kind contributions such as corporate expertise, technological support, 
access to services, and donation of retired equipment. We see more efforts 
to share distribution channels with cause partners; to volunteer employee 
time; to integrate the issue into marketing, corporate communications, 
human resources, community relations, and operations; to form strategic 


The Case for Doing at Least Some Good 

alliances with one or more external partners (private, public, nonprofit); 
and to have funding come from additional business units such as market- 
ing and human resources. 

Evaluation now has increased importance, perceived as critical to 
answering the question "What good did we do?" Trusting is not good 
enough. This input is valued as a part of a strategic framework that then 
uses this feedback for course correction and credible public reporting. As 
a result, we see increased pressures for setting campaign goals, measuring 
outcomes for the corporation, and measuring impact for the cause. 

Amid these increased pressures for evaluation of outcomes, program 
partners are challenged with determining methodologies and securing 
resources to make this happen. 


Most health care professionals promise that if we engage in regular phys- 
ical activity we'll look better, feel better, do better, and live longer. There 
are many who say that participation in corporate social initiatives has 
similar potential benefits. It appears that such participation looks good to 
potential consumers, investors, financial analysts, business colleagues, in 
annual reports, in the news, and maybe even in Congress and the court- 
room. It is reported that it feels good to employees, current customers, 
stockholders, and board members. There is growing evidence that it does 
good for the brand and the bottom line as well as for the community. And 
there are some who claim that corporations with a strong reputation for 
corporate social responsibility actually last longer. 

Let's examine the existing evidence that participation in corporate 
social initiatives can impact key performance factors, which could then 
support these claims. 

Business for Social Responsibility is a leading nonprofit global orga- 
nization providing businesses with information, tools, training, and advi- 
sory services related to integrating corporate social responsibility in their 
business operations and strategies. Their research and experience con- 
cludes that companies have experienced a range of bottom-line benefits, 
including reference to several of the following: 21 

• Increased sales and market share. 

• Strengthened brand positioning. 

Why Do Good? 


• Enhanced corporate image and clout. 

• Increased ability to attract, motivate, and retain employees. 

• Decreased operating costs. 

• Increased appeal to investors and financial analysts. 
Increased Sales and Market Share 

Surveys conducted by Cone/Roper, mentioned earlier in this chapter, 
have provided strong evidence that companies can benefit significantly 
from connecting themselves to a cause, as illustrated in the following 
(now often quoted) findings from their benchmark survey of consumers 
in 1993/1994: 

• "Eighty -four percent said they have a more positive image of com- 
panies that do something to make the world better." 

• "Seventy-eight percent of adults said they would be more likely to 
buy a product associated with a cause they cared about." 

• "Sixty-six percent said they would switch brands to support a 
cause they cared about." 

• "Sixty-two percent said they would switch retail stores to support 
a cause." 

• "Sixty-four percent believe that cause-related marketing should 
be a standard part of a company's activities." 22 

Further, it was found that cause marketing activities had the 
strongest impact on people in higher education and income categories — 
those who attended college and earn more than $30,000 a year. 

Evidently, these attitudes were strengthened after 9/11, as evidenced 
by the 2001 Cone/Roper Corporate Citizenship Study, which indicated 
an increased importance for corporate involvement in social issues. In 
March 2001, an estimated 65 percent of Americans surveyed believed 
companies should support causes. By November, that number had in- 
creased to 79 percent. "The atmosphere since September 1 1 has acceler- 
ated and intensified a trend that our Cone/Roper research has 
documented since 1993," said Carol Cone, CEO of Cone. "We are seeing 
extraordinary jumps of 20 to 50 percent in public opinion. Corporate cit- 
izenship should now become a critical component of business planning 


The Case for Doing at Least Some Good 

as Americans are promising increased support for companies that share 
their values and take action." 23 

In 2002, there appeared to be no letup. The 2002 Cone Corporate 
Citizenship Study reported that 84 percent of Americans said they would 
be likely to switch brands to one associated with a good cause, if price 
and quality are similar. 24 

Others have similar contentions and present strong evidence that 
involvement in social causes increases brand preference: 

• Paul Bloom, Steve Hoeffler, Kevin Keller, and Carlos Basurto 
contend that "consumers these days monitor and pay attention to 
how brands are marketed, and if they like the way that marketing 
is done because they have some type of positive feelings about or 
affinity toward the social cause being supported in the marketing 
program, then consumers will weigh the brand's marketing ap- 
proach more heavily and positively compared to how they would 
weigh a brand's marketing program if it were supporting a nonso- 
cial cause (e.g., commercial sponsorship) in forming preferences." 25 

• In an article by Minette Drumwright in the journal of Marketing, 
entitled "Socially Responsible Organizational Buying: Environ- 
mental Concern as a Noneconomic Buying Criterion," the case is 
made that "as the earth becomes more populous and more re- 
source depleted, noneconomic criteria are likely to play more 
prominent roles in organizational buying processes." She quotes 
several studies: "In surveys, 75 percent of consumers have said 
their purchasing decisions are influenced by a company's reputa- 
tion with respect to the environment, and eight in ten have said 
they would pay more for products that are environmentally 
friendly (Klein 1990). One survey notes that 85 percent have said 
they believe that U.S. companies should be doing more to be- 
come environmentally responsible (Chase and Smith 1992). " 26 

• As summarized by Business for Social Responsibility, a 1999 study 
conducted by Environics International Ltd., The Prince of Wales 
Business Leaders Forum, and The Conference Board surveyed 
25,000 citizens in 23 countries regarding corporate social respon- 
sibility. Highlights of findings included the following: 

• Ninety percent of respondents want companies to focus on 
more than profitability. 

Why Do Good? 


• Sixty percent said they form an impression of a company 
based on perceptions of social responsibility. 

• Forty percent said they either responded negatively to or 
said negative things about companies they perceive as not 
being socially responsible. 

• Seventeen percent reported they had actually avoided the 
products of companies if they perceived them as not being 
socially responsible. 27 

Clearly, one of the best examples of a corporate social initiative that 
increased sales and market share was the American Express campaign for 
the restoration of the Statue of Liberty in the early 1980s. Featured in 
Chapter 4, American Express is an inspiring example of the potential for 
cause-related marketing. Instead of just writing a check to help with the 
cause, American Express tried a new approach, and the marketing world 
was watching. They pledged that every time cardholders used their cards, 
the company would make a contribution to a fund to restore the Statue 
of Liberty, as well as an additional contribution for every new card appli- 
cation. The campaign generated $1.7 million in funds for "the lady," a 27 
percent increase in card usage, and a 10 percent jump in new card mem- 
ber applications. 28 

Strengthened Brand Positioning 

In their book Brand Spirit, Hamish Pringle and Marjorie Thompson make 
a strong case for the contribution that linking a company or brand to a 
relevant charity or cause can make to the "spirit of the brand." They con- 
tend that consumers are going beyond "the practical issues of functional 
product performance or rational product benefits and further than the 
emotional and psychological aspects of brand personality and image. 
Consumers are moving towards the top of Maslow's Hierarchy of Needs 
and seeking 'self-realization.' " 29 What they are asking for and are drawn 
to now are demonstrations of good. "In an anthropomorphic sense, if con- 
sumers know how a brand functions and how it 'thinks' and 'feels.' then 
the new question that has to be answered is 'What does it believe in?' " 30 
Bloom, Hoeffler, Keller, and Basurto see "marketing initiatives con- 
taining a larger amount of social content having a more positive effect 
on brand judgments and feelings than initiatives that are similar in size 
and scope but contain less social content. By 'social content' we mean 


The Case for Doing at Least Some Good 

activities in the marketing initiative that are meant to make tangible im- 
provements to social welfare. Thus a program that would make a dona- 
tion to an environmental organization every time a purchase was made 
would be higher in social content than a program that gave a consumer a 
free toy every time a purchase was made." 31 

Consider, for example, the spirit that participation in corporate so- 
cial initiatives has given to the Ben 6k Jerry's brand. Most of us, when we 
see or hear the words "Ben 6k Jerry's," think of a philanthropic company 
that promotes and supports positive social change. We may know about 
their PartnerShops program that waives standard franchise fees for non- 
profit organizations in order to offer supportive employment; or we may 
know about their commitment to promoting world peace, including a list 
of 50 ways to promote peace in the world posted on their corporate web 
site,; or we may know about their "Coffee For A 
Change" program, which pays a premium for coffee beans from farmers 
committed to sustainable farming practices. In the end, when we see the 
lineup of ice creams in the freezer section of our favorite grocer, many of 
us have a unique image and positive feeling for the Ben 6k Jerry's label. 

Improved Corporate Image and Clout 

Several existing and respected reports cover standards and assessment 
of performance in the area of corporate social responsibility, including 
the following: 

• The Council on Economic Priorities is a public service research 
firm that evaluates company performance on a range of social di- 
mensions and publishes Shopping for a Better World to influence 
consumers' purchase decisions. 32 

• Fortune publishes an annual list of "America's Most Admired 
Companies," based on a survey of 10,000 executives and securities 
analysts conducted by HayGroup, a global consultancy firm. Re- 
spondents are asked to rate companies, using a scale from 0 to 10, 
on eight attributes: innovation, financial soundness, employee tal- 
ent, use of corporate assets, long-term investment value, quality of 
management, quality of products/services, and social responsibil- 
ity. These eight attributes were determined more than 20 years 
ago through research that uncovered strong opinions that social 
responsibility — defined simply as "responsibility to the community 

Why Do Good? 


and/or the environment" — should be one of the eight attributes. 
In 2004, those on the top 10 list for the social responsibility sub- 
category in the United States were United Parcel Service, Alcoa, 
Washington Mutual, BP, McDonald's, Procter & Gamble, Fortune 
Brands, Altria, Vulcan Materials, and American Express. 33 

• Business Ethics publishes a list of "100 Best Corporate Citizens," rec- 
ognizing companies' corporate social responsibility toward stake- 
holders, including the environment and the community. In 2002, 
the top five Best Corporate Citizens were IBM, Hewlett-Packard, 
Fannie Mae, St. Paul Companies, and Procter & Gamble. 34 

• Other external reports and standards covering corporate social re- 
sponsibility include the Global Reporting Initiative, the Global 
Sullivan Principles, Social Accountability 8000, the Caux Round 
Table, the Interfaith Center on Corporate Responsibility, Sun- 
shine Standards for Corporate Reporting to Stakeholders, and the 
Keidanren Charter for Good Corporate Behavior. 35 

In addition to positive press from reports such as these, according to 
Business for Social Responsibility, "companies that demonstrate they are 
engaging in practices that satisfy and go beyond regulatory compliance 
requirements are being given less scrutiny and more free rein by both na- 
tional and local government entities." 36 

A strong reputation in the community can be a real asset in times of 
crisis. Hess, Rogovsky, and Dunfee describe a dramatic example of this, 
in which a good reputation protected McDonald's during the 1992 South 
Central Los Angeles riots. "The company's efforts in developing commu- 
nity relations through its Ronald McDonald Houses and its involvement 
in developing employee opportunities gave the company such a strong 
reputation, McDonald's executives stated, that rioters refused to harm 
their outlets. While vandalism caused tremendous damage to businesses 
in the area, all 60 of McDonald's franchises were spared harm." 37 

And finally, this positive corporate image may also influence pol- 
icy makers as well. Craig Smith, in the article mentioned earlier, "The 
New Corporate Philanthropy," cites an example for AT&T in the 
early 1990s. The AT&T Foundation, the principal instrument for 
AT&T philanthropy, supports various education and art programs for 
children. As a result, "in the postelection (Clinton/Gore) economic 
summit in Little Rock, Arkansas . . . [AT&T CEO Robert] Allen was 


The Case for Doing at Least Some Good 

able to comment on the link between economic performance and the 
well-being of children. Then, as if to thank Allen for addressing a cru- 
cial issue on the policy agenda, President Clinton called on Allen to 
speak about the information superhighway. In front of the nation, the 
CEO of AT&T was able to make a point crucial to the company's gov- 
ernment relations strategy: the superhighway should be a private 
rather than a public initiative." 38 

Increased Ability to Attract, Motivate, and Retain Employees 

Cone/Roper studies also indicate that a company's participation in so- 
cial initiatives can have a positive impact on prospective and current 
employees, as well as citizens and executives. According to their March 
2001 survey, employees working in companies reported to have cause- 
related programs were 38 percent more likely to say they are proud of 
their company's values than were employees in companies not reported 
to have these programs. Even before 9/1 1, 48 percent of respondents in- 
dicated that a company's commitment to causes is important when de- 
ciding where to work. After 9/11, that percentage rose to 76. 39 And in 
their 2002 Citizenship Study with a national cross section of 1,040 
adults, 80 percent of respondents said they would be likely to refuse to 
work at a company if they were to find out about negative corporate cit- 
izenship practices. 40 

Similarly, one noteworthy study conducted by Net Impact found 
that more than half of the 2,100 MBA students surveyed indicated they 
would accept a lower salary in order to work for a socially responsible 
company. Two additional studies conducted by the World Resources In- 
stitute and the Initiative for Social Innovation Through Business, also 
focused on MBAs, reported that these graduates look for the right corpo- 
rate culture, as well as the right salary, job description, and opportunities 
for promotion. 41 

At Timberland, for example, full-time U.S. employees are given 40 
hours of paid time off to perform community service; part-time employ- 
ees get 16 hours per year. This program, called Path of Service, began in 
1992, and by the year 2000, nearly 95 percent of Timberland's U.S. em- 
ployees were participating in the program. The program has been recog- 
nized by many, including Fortune, which for the past three years has 
rated Timberland as one of its "100 Best Companies to Work For." This 
service program was cited as a factor in its selection. 42 

Why Do Good? 


Decreased Operating Costs 

Several business functions can cite decreased operating costs and in- 
creased revenue from grants and incentives as a result of the implemen- 
tation of corporate social initiatives. One arena easy to point to includes 
companies who adopt environmental initiatives to reduce waste, reuse 
materials, recycle, and conserve water and electricity. 

At Cisco Systems, for example, an energy conservation initiative 
called "Cleaner Air and Millions in Savings" is expected to save the com- 
pany about $4-5 million per year in operating costs. In addition, these en- 
ergy savings will eventually qualify the company for an estimated $5.7 
million in rebates from the local energy supplier, Pacific Gas & Electric. 43 

Another area for potential reduced costs is in advertising expendi- 
tures, especially as a result of increased free publicity. The Body Shop, for 
example, is noted for its campaign against using animals for cosmetic test- 
ing. According to an article by the World Business Council for Sustain- 
able Development, "The Body Shop was launched on the basis of fair 
prices for fairly produced cosmetics. Anita Roddick, its founder, generated 
so much favorable publicity that the company did not need to advertise: a 
win-win on the cost-benefit front, leaving aside the do-gooding." 44 

Increased Appeal to Investors and Financial Analysts 

Some argue that involvement in corporate social initiatives can even in- 
crease stock value. They point to the ability to attract new investors and 
reduce exposure to risk in the event of corporate or management crises: 

• In an article appearing in the Financial Times in July 2003, Jane 
Fuller wrote: "It pains me to say this, but I am becoming less cyni- 
cal about Corporate Social Responsibility. This is not because of 
the weight of words expended on this subject by companies, lobby- 
ists, and politicians. It is because companies that are less exposed 
to social, environmental, and ethical risks are more highly valued 
by the market ... In other words, investors are already pricing in 
social, environmental, and ethical factors. This is not sentimental 
behavior. It represents a cool appraisal of various costs." 45 

• Praveen Sinha, Chekitan Dev, and Tania Salas suggest that demand 
for investments in firms deemed socially responsible can be en- 
hanced "as some mutual funds and large pension funds are mandated 


The Case for Doing at Least Some Good 

to make investments in only those companies deemed socially re- 
sponsible (for instance, CREF's Social Choice Fund)." 46 

• Business for Social Responsibility agrees that companies that ad- 
dress ethical, social, and environmental responsibilities have 
"rapidly growing access to capital that might not otherwise have 
been available." They cite a Social Investment Forum report that 
estimates that assets under management in portfolios using 
screens linked to ethics, the environment, and corporate social re- 
sponsibility have grown from "$639 billion in 1995 to $1,185 tril- 
lion in 1997, to $2.16 trillion in 1999." 47 

• An often-quoted study by the University of Southwestern 
Louisiana, "The Effect of Published Reports on Unethical Conduct 
on Stock Prices," demonstrated that publicity about unethical cor- 
porate behavior lowers stock prices for a minimum of six months. 48 

• According to an article posted by in April 2002, 
an academic study conducted at DePaul University concluded 
that the 100 companies making Business Ethics' list of 100 Best 
Corporate Citizens had a better financial performance than the 
remaining companies on the S&P 500. Business Ethics editor and 
publisher Marjorie Kelly was quoted as saying, "These top compa- 
nies perform substantially better than their S&P 500 peers, in 
strictly financial terms." 49 


Managers and program planners are challenged at each of the fundamen- 
tal decision points identified throughout this book — decisions related to 
choosing a social issue, selecting an initiative to support this issue, devel- 
oping and implementing program plans, and evaluating outcomes. 

Choosing a Social Issue 

Challenges are perhaps the greatest in this very first step, as experience 
has shown that some social issues are a better fit than others, and this 
first decision has the greatest impact on subsequent programs and out- 
comes. Those making the recommendations will end up juggling com- 

What Are the Major Current Challenges to Doing Good? 


peting priorities and publics. They will be faced with tough questions, in- 
cluding these: 

• How does this support our business goals? 

• How big of a social problem is this? 

• Isn't the government or someone else handling this? 

• What will our stockholders think of our involvement in this issue? 

• Is this something our employees can get excited about? 

• Won't this encourage others involved in this cause to approach us 
(bug us) for funds? 

• How do we know this isn't the "cause du jour"? 

• Will this cause backfire on us and create a scandal? 

• Is this something our competitors are involved in and own already? 

In February 2003, a feature article in Business2.0 entitled "The Selling 
of Breast Cancer" described one of the pitfalls in this decision making in 
real terms. In the summer of 2000, Dreyer's had apparently decided it 
wanted to support the cause of fighting breast cancer. "It had watched other 
companies conduct campaigns backing the search for a cure — and had seen 
their logos displayed at well-attended rallies and their products festooned 
with the cause's signature pink ribbons." When Dreyer's approached the 
Komen Foundation, however, they found that Yoplait had an exclusive 
contract to be the only yogurt manufacturer involved in this cause. 50 

Selecting an Initiative to Address the Issue 

Once an issue has been chosen, managers will be challenged regarding 
recommendations on what initiative or initiatives among the six identi- 
fied in Chapter 2 should be selected to support the issue. Again, they will 
need to be prepared to answer tough questions: 

• How can we do this without distracting us from our core business? 

• How will this initiative give visibility to this company? 

• Do these promotions really work? Who pays attention to them? 

• What if we tie our funding commitment to sales and end up writ- 
ing them a check for only $100? How will that look? 


The Case for Doing at Least Some Good 

• What if consumers find out that the amount of the sale that actu- 
ally goes to the cause is minuscule? 

• Have we calculated the productivity cost for giving our employees 
time off for volunteering? 

• Giving visibility, especially shelf space in our stores, for this cause 
doesn't pencil out. Shouldn't we just write a check or give a grant? 

Developing and Implementing Program Plans 

Key decisions at this point include whether to partner with others and, if 
so, with whom; determining key strategies, including communications 
and distribution channels; assigning roles and responsibilities; develop- 
ing timetables; and determining budget allocations and funding sources. 
The questions continue, especially around issues of time and money: 

• How can we do this when money is needed for increased perfor- 

• What do we say to stockholders who see this as money that be- 
longs to them? 

• Why is our department being asked to fund this? 

• Will having partners bog down the decision-making process and 
therefore take more of our staff time? 

• Will we be doing enough good for the cause to justify the ex- 

• Isn't this just brand advertising in disguise? 

• What is our exit strategy? 

• How do we keep from looking hypocritical? 

Philip Morris began a social marketing initiative in 1999 with the 
slogan, "Talk to your kids about not smoking. They'll listen." This mass 
media campaign included print ads in magazines, a free 16-page, four- 
color brochure, and a web site with tips and lists of additional resources 
for parents. For some, this initiative probably rang hollow, with people 
perhaps questioning the authenticity of a claim that a member of the to- 
bacco industry is not interested in a market representing an estimated 
one billion packs of cigarettes a year. 51 

What Are the Major Current Challenges to Doing Good? 



Ongoing measurement of marketing activities and financial investments 
for corporations has a long record, with decades of experience in building 
sophisticated tracking systems and databases that provide analysis of re- 
turns on investments and compare current activities to benchmarks and 
"gold standards." By contrast, the science of measuring return on invest- 
ments in corporate social initiatives is very young, with little historic 
data and expertise. Marketing professionals and academic experts in the 
field confirm this challenge. 

• Sinha, Dev, and Salas report that "Since the benefits related to 
CSR are not directly measurable, and most firms do not disclose 
expenses related to such activities, it is difficult to directly assess 
the return on CSR investment." 52 

• McDonald's reports that even measuring a major event is chal- 
lenging. "Most of our current goals and measurements are related 
to processes, systems development, and standard setting. . . . We 
are 70 percent franchised around the world: Currently, we do not 
have systems to collect and aggregate what some 5,500 indepen- 
dent owner/operators do for their community, people, and envi- 
ronment at the local level." 53 

• John Gourville and Kash Rangan confirm this difficulty: "Rarely do 
firms fully assess a cause marketing alliance and its potential impact 
on both the for-profit and the nonprofit entities. Yes, there are sev- 
eral stunning success stories . . . but most for-profit businesses would 
be hard-pressed to document the long-term business impact of their 
cause marketing campaigns and most nonprofits would have trou- 
ble pinpointing the value they bring to the partnership." 54 

And yet, as Bloom, Hoeffler, Keller, and Basurto conclude, "showing 
that the program was a more financially productive promotional tool than 
other possible promotional tools is becoming increasingly necessary." 55 

Subsequent chapters, especially our summary chapter on best prac- 
tices (Chapter 9), is intended to help answer these questions and prepare 
managers for these challenges. 



Corporate Social Initiatives: 
Six Options for Doing Good 

Since its founding in 1889, Washington Mutual has made giving back to 
the communities in which it operates a top priority, not simply because it's 
good for business , but because it's the right thing for responsible corporate 
citizens to do. And make no mistake, the results are tangible. 

— Kerry Killinger, Chairman, President, 
and CEO of Washington Mutual, in the 
2001 Community Annual Report 1 

In Chapter 1 we defined corporate social initiatives as major activities 
undertaken by a corporation to support social causes and to fulfill 
commitments to corporate social responsibility. We have identified 
six major initiatives under which most social responsibility-related ac- 
tivities fall, and this chapter gives brief descriptions of each. In subse- 
quent chapters, each initiative is presented in more detail, including 
typical programs, potential benefits, potential concerns, keys to success, 
when to consider the initiative, and steps in developing program plans. 
The final chapters of the book summarize these perspectives to present 
best practices for choosing, implementing, and evaluating corporate so- 
cial initiatives. 


Corporate Social Initiatives: Six Options for Doing Good 23 

The six social initiatives explored are as follows: 

1. Cause Promotions: A corporation provides funds, in-kind con- 
tributions, or other corporate resources to increase awareness and con- 
cern about a social cause or to support fundraising, participation, or 
volunteer recruitment for a cause. The corporation may initiate and 
manage the promotion on its own (i.e., The Body Shop promoting a ban 
on the use of animals to test cosmetics); it may be a major partner in an 
effort (Aleve sponsoring the Arthritis Foundation's fundraising walk); or 
it may be one of several sponsors (Keep America Beautiful 2003 sponsors 
for the "Great American Cleanup" included Lysol, PepsiCo, and Fire- 
stone Tire 6k Service Centers, among others). 

2. Cause-Related Marketing: A corporation commits to making a 
contribution or donating a percentage of revenues to a specific cause 
based on product sales. Most commonly this offer is for an announced 
period of time, for a specific product, and for a specified charity. In this 
scenario, a corporation is most often partnered with a nonprofit organi- 
zation, creating a mutually beneficial relationship designed to increase 
sales of a particular product and to generate financial support for the 
charity (for example, Comcast donates $4.95 of installation fees for its 
high-speed Internet service to Ronald McDonald House Charities 
through the end of a given month). Many think of this as a win- win- win, 
as it provides consumers an opportunity to contribute for free to their fa- 
vorite charities as well. 

3. Corporate Social Marketing: A corporation supports the devel- 
opment and/or implementation of a behavior change campaign intended 
to improve public health, safety, the environment, or community well- 
being. The distinguishing feature is the behavior change focus, which dif- 
ferentiates it from cause promotions that focus on supporting awareness, 
fundraising, and volunteer recruitment for a cause. A corporation may 
develop and implement a behavior change campaign on its own (i.e., 
Philip Morris encouraging parents to talk with their kids about tobacco 
use), but more often it involves partners in public sector agencies (Home 
Depot and a utility promoting water conservation tips) and/or nonprofit 
organizations (Pampers and the SIDS Foundation encouraging caretak- 
ers to put infants on their backs to sleep). 

4- Corporate Philanthropy: A corporation makes a direct contribu- 
tion to a charity or cause, most often in the form of cash grants, donations, 

24 Corporate Social Initiatives: Six Options for Doing Good 

and/or inkind services. This initiative is perhaps the most traditional of all 
corporate social initiatives and for many decades was approached in a re- 
sponsive, even ad hoc manner. As mentioned in Chapter 1 , more corpora- 
tions are now experiencing pressures, both internally and externally, to 
move to a more strategic approach, choosing a focus and tying philan- 
thropic activities to the company's business goals and objectives. 

5. Community Volunteering: A corporation supports and encour- 
ages employees, retail partners, and/or franchise members to volunteer 
their time to support local community organizations and causes. This ac- 
tivity may be a stand-alone effort (i.e., employees of a high tech com- 
pany tutoring youth in middle schools on computer skills) or it may be 
done in partnership with a nonprofit organization (Shell employees 
working with The Ocean Conservancy on a beach cleanup). Volunteer 
activities may be organized by the corporation, or employees may choose 
their own activities and receive support from the company through such 
means as paid time off and volunteer database matching programs. 

6. Socially Responsible Business Practices: A corporation adopts 
and conducts discretionary business practices and investments that sup- 
port social causes to improve community well-being and protect the en- 
vironment. Initiatives may be conceived of and implemented by the 
organization (i.e., Kraft deciding to eliminate all in-school marketing) or 
they may be in partnership with others (Starbucks working with Conser- 
vation International to support farmers to minimize impact on their lo- 
cal environments). 

To further illustrate and bring to life these distinctions, three case 
examples follow: Washington Mutual, Dell Inc., and McDonald's. In 
each case, background information on the corporation's focus for social 
initiatives is briefly described, followed by an example of a social initia- 
tive in each of the six areas. 


With a history dating back to 1889, Washington Mutual, Inc. — or 
WaMu, as it is known — is a national financial institution with a 115- 
year legacy of contributing to the communities where it does business. 
As reported in its 2003 Community Annual Report, total combined 

Table 2. 1 Examples of Washington Mutual's Corporate Social Initiatives 














Business Practices 

1 (per i*i t~\t~\ r\t~\ 

OUjjpUI Llll^ SOCLdL 

IVldJs_lIiP ci 

OlippOI LLIL^ 

IVldKlIlg Q11CCL 


.T^UUpLlllg dllU 

causes through 

contribution or 

behavior change 

contributions to a 

services in the 



donating a 


charity or cause 




percentage of 
revenues to a 
specific cause 
based on 
product sales 
or usage 

business practices 
and investments 
that support social 


WaMu sponsors 

The WaMoola 

WaMu sponsors 

WaMu awards cash 

WaMu supports 

WaMu provides 


for Schools® 

bank days at 

grants to fund 

employees to 

on-the-job training 


program ties 



volunteer in 

for high school 


support for local 

schools where 

development of 

classrooms and 


schools to 

parent and team 


spruce up school 

Visa® Check 

volunteers work 


Card usage. 

with students to 
open savings 
accounts and 
make regular 

26 Corporate Social Initiatives: Six Options for Doing Good 

charitable giving by Washington Mutual, Inc. and its subsidiaries 
equaled $94-0 million for the year, up from $72.0 million in 2002. 

WaMu has a strategic focus for giving, with a top priority since 
1927 placed on improving K-12 education. In 2003 alone, it gave 
$15.7 million in cash grants to education initiatives. Its customer re- 
search and community needs assessment findings consistently identify 
education as a key community concern. Contributions to this effort are 
primarily achieved through cash grants, innovative programs, and em- 
ployee volunteerism. (See Table 2.1.) 

The banks in the Washington Mutual family of companies have a 
standard practice to involve its branch network in support of education 
initiatives and to make strong efforts to connect those initiatives to its 
product offerings, to feature them in new market launches, and to create 
visibility for its contributions and initiatives in its advertising, publicity, 
and collateral and special events. Research indicates that the results of 
these initiatives are an increase in business, goodwill in the community, 
and customer loyalty. WaMu advises other corporate managers to stick 
with a few good ideas, develop long-term equity, and take special, even 
bold measures to ensure that messages regarding giving do not get lost 
among other efforts. 2 

Note that the theme of education is reflected in each example of 
WaMu's social initiatives in this summary list. A detailed description of 
the programs follows. 

Cause Promotions: Teacher Recruitment 

WaMu supports a variety of programs and efforts to attract and keep tal- 
ent in the classroom. Spurred by the U.S. Department of Education's 
prediction that our nation will need more than two million new teachers 
over the next decade, WaMu focuses on programs targeting recent col- 
lege graduates as well as mid-career professionals. 

As an example of a local program, financial centers in Miami, 
Florida, helped Washington Mutual sponsor a May 2003 town hall meet- 
ing that facilitated community discussions around teacher recruitment, 
induction, and retention. In attendance were more than 200 community 
members, including local businesspeople, elected officials, parents, ad- 
ministrators, and teachers. One activity of support included the distribu- 
tion of 197,000 fliers publicizing the event to parents and Washington 
Mutual's banking customers (see Figure 2.1). The meeting aired on 

Washington Mutual, Inc. 


Who will teach our kids? 

Pon't miss this important 
live Town Hall Meeting 
Wednesday, May t% t 7-8 p.m. 
on C&S4 

Moderated by CSS4 anchors 
Eliott Rodriguez and Maggie Rodriguez, 
and Miami Herald reporter and columnist Robert Steinback 

Stay informed. Tune in and learn more about 
the teacher shortage crisis. 

Figure 2.1 Washington Mutual was a sponsor of a town hall 
meeting on teacher recruitment, induction, and retention. 
(Courtesy ofKCNC-TV.) 

28 Corporate Social Initiatives: Six Options for Doing Good 

WFOR-TV, CBS4, a local television station, with a reported 40,000 
households tuned in and more than 10.4 million audience impressions 
garnered by this airing and related coverage. 

Cause-Related Marketing: The WaMoola for Schools® Program 

In a time when educational budgets are tighter than ever, every dollar 
counts when it comes to school funding. This is especially true for unre- 
stricted funds, in which schools can decide for themselves how to use the 
money — whether it's for teacher training, special assemblies, school sup- 
plies, playground equipment, field trips, or musical instruments. WaMu 
found every school has a wish list, and wants to help fulfill them. 

The WaMoola for Schools® program was specifically created to sup- 
port K-12 schools. For years under this program the banks in the 
Washington Mutual family of companies gave $1 per checking ac- 
count to a public K-12 school. This year (2004), it relaunched this 
program to support both public and private K-12 schools. It is believed 
to be the first program of its kind to tie support for local schools to 
Visa® Check Card purchases once the customer enrolls, and in turn al- 
lows schools to accumulate points that will be converted to cash at 
the end of each year. 

The program was designed to be simple and flexible. There's no en- 
rollment fee, and Washington Mutual does not charge customers for us- 
ing its check cards for purchases (though merchants might). Under the 
program, customers enroll by selecting a school to benefit and begin by 
simply using their check cards when making everyday purchases. The 
designated public or private school will receive a point currently equiva- 
lent to 5 cents for each purchase made using the card. At the end of the 
year, the points will be converted into cash and schools receive a check 
from Washington Mutual (see Figure 2.2). 

Corporate Social Marketing: School Savings® Program 

Since 1923, the School Savings® program has provided students with 
hands-on lessons about handling money responsibly. Professionals from 
local Washington Mutual financial centers work with elementary schools 
and parent volunteers to teach students positive savings habits. At partic- 
ipating schools across the country, students are encouraged to open a 
Washington Mutual savings account and then to bring their allowance, 

Washington Mutual, Inc. 


Figure 2.2 The WaMoola for Schools® program awards points to 
designated schools for each purchase made using a Washington Mutual 
VISA® Check Card by a customer enrolled in the program. At the end of 
the year, the points are converted to cash and Washington Mutual mails 
checks to the local schools. (Reprinted courtesy of Washington Mutual.) 

30 Corporate Social Initiatives: Six Options for Doing Good 

birthday checks, and odd-job money on weekly school Bank Days to give 
to the volunteer to deposit at the bank. 

The School Savings program is primarily promoted through a grass- 
roots effort. Resource materials and training classes are provided for fi- 
nancial center employees so they can learn about the program and 
present it to local schools. Marketing materials such as a kid-oriented, 
fun program guide, brochure, and calendar are used at PTA meetings and 
other local events to promote the program (see Figure 2.3). Nearly 

Figure 2.3 Materials used in classrooms to teach students positive 
savings habits. (Reprinted courtesy of Washington Mutual.) 

Washington Mutual, Inc. 


200,000 students at more than 1,000 elementary schools around the 
country now participate in the School Savings program. 

Corporate Philanthropy: Cash Qrants for Education 

WaMu also gives millions of dollars each year to fund the professional 
development of teachers, leadership training for principals, organiza- 
tional development for schools, and programs that provide information 
about school performance to parents. Special emphasis is placed on 
grants to education programs benefiting K-12 public schools in low- to 
moderate -income communities. 

When choosing among applications, WaMu looks for those with 
clearly measurable results and ones providing opportunities for teachers 
to grow professionally, learn from experience, and work with their peers 
to improve performance. 3 

An example is WaMu's funding of professional development oppor- 
tunities for teachers. Through its Teacher Scholarship Fund, WaMu pro- 
vides assistance for educators seeking certification by the National Board 
for Professional Teaching Standards. At year-end 2003, WaMu provided 
scholarship assistance to more than 2,400 teachers nationwide. 4 

Community Volunteering: CAN.' (Committed Active Neighbors)™ 

In 2003, WaMu employees volunteered 44,000 times for a total of 
184,000 hours of community service. Many employees volunteer for 
schools, organizing projects ranging from helping teachers in the class- 
room and sprucing up school grounds to conducting school supply drives. 
Employees worked on the projects either solo or as teams. 5 

The company provides management support for eligible employ- 
ees to volunteer up to four hours of paid time off per month, and 
incentives that include company donations to the nonprofits employ- 
ees serve. 

One financial education activity is the Classroom Presentations pro- 
gram, consisting of free, one-hour courses introducing young students to 
the concept of money and teenagers to the concept of credit manage- 
ment. As an example, in Pasadena, California, WaMu volunteers arrived 
at Eugene Field Elementary wearing CAN! shirts, visors, and handmade 
medallions shaped like giant coins, and made their presentation on fi- 
nancial literacy fun through rap songs (see Figure 2.4). 6 

32 Corporate Social Initiatives: Six Options for Doing Good 

Figure 2.4 WaMu employees volunteering in a classroom. 
(Photo: JeffBraverman.) 

WaMu also offers financial education classes for adults. Your Money 
Matters is a four-part curriculum specifically designed for adults who have 
little or no banking experience. Classes are available in both English and 
Spanish and include Checking and Savings, Budgeting and Your Credit, 
Lending Basics, and Credit Card Basics. In 2003, more than 8,500 con- 
sumers participated in Your Money Matters classes. 

Socially Responsible Business Practices: High School Intern Program 

Washington Mutual's High School Intern Program (HIP) reflects the com- 
pany's commitment to preparing a workforce for the future and giving 
students the opportunity to gain extensive job training and valuable 
work experience. Likewise, the program enables Washington Mutual to 
recruit and mentor new talent. Washington Mutual works with local 
schools to recruit interns for such positions as financial representatives, 
support specialists, and other administrative jobs. 

Dell Inc. 


This training gives HIP interns work experience, transferable job 
skills, and, in some cases, academic credit. Some interns become regular 
Washington Mutual employees. In 2003, nearly 800 high school students 
across the country graduated from the two-year program. 7 

Among the company's top priorities in support of its commitment 
to socially responsible business practices is the development of a work- 
force responsive to the needs of the diverse communities in which 
Washington Mutual does business. In 2003, WaMu ranked 4th in the 
nation in Working Woman magazine's "Top 25 Companies for Execu- 
tive Women" and once again ranked among Fortune's "Best Compa- 
nies for Minorities." 8 


Dell is a global company that delivers products and services in more 
than 190 countries and has more than 40,000 employees who live and 
work on six continents. 9 Major products include enterprise computing 
products, desktops, monitors, printers, notebooks, handhelds, software, 
and peripherals. 

Dell has a focus on fully integrating improved environmental perfor- 
mance into business practices and marketing efforts, as well as corporate 
giving. In a letter on Dell's commitment to the environment, Chairman 
and CEO Michael Dell wrote: "Dell is fully committed to products and 
practices that minimize risk to the environment, working to reduce — 
and eventually eliminate — environmentally sensitive substances and to 
keep materials out of landfills." 10 This is further articulated through an 
environmental policy that includes designing products with the environ- 
ment in mind, preventing waste and pollution, and achieving an envi- 
ronmentally focused culture. 11 

In the summary list, note the theme of environmental stewardship in 
each of the major initiatives. A more detailed description of each of the 
programs follows. 

Cause Promotions: Dell Recycle 

Electronic equipment is a fast-growing portion of America's potential 
trash, with 250 million computers predicted to become obsolete by 

Table 2.2 Examples of Corporate Social Initiatives for Dell 














Business Practices 



Donating a 


Making direct 

Providing volunteer 

Adopting and 

social causes 

percentage of 


contributions to a 

services in the 



revenues to a 


charity or cause 



promotions to 

specific cause 




based on 

practices and 


product sales 

investments that 


support social 




Dell sponsors 

Dell offers 10 

Dell offers free 

Through Dell's 

Dell employees 

Dell creates 

efforts to collect 

percent off 

and convenient 

"Direct Giving" 

around the globe 

product design 

used computers 

selected new 

return of used 

program with 

participate in 

programs with 

for donations to 

products when 

printers for 




local nonprofits 

up to three 

recycling or 




and public 

used products 


donations are made 




are recycled 

to Earth Share, 
which supports 

Week" each 
including activities 
such as park 

policies, and 

Dell Inc. 


2005. 12 Through Dell's partnership with the National Cristina Founda- 
tion (NCF), customers can donate computer equipment to charity, do 
their part to reduce landfills, and possibly receive a tax deduction. The 
National Cristina Foundation is a nonprofit organization that places 
used computers and other technology with local nonprofit organizations 
and public agencies that serve disabled and economically disadvantaged 
children and adults. 13 

In December 2001, Dell and NCF marked the one-year anniversary 
of this partnership through which hundreds of computers had been do- 
nated and reused by organizations worldwide. A special holiday promo- 
tion encouraged consumers to donate their used computers at no cost 
through Dell Recycling at, where con- 
sumers would enter information about their system online and NCF 
would search for partner agencies to match the donation in the donor's 
area. The local organization would then work with the consumer to 
arrange pickup or drop-off. 14 Figure 2.5 shows Dell's recycling logo. 

Cause-Related Marketing: Discounts for Recycling Online 

In another effort to encourage recycling of used equipment, Dell offered 
a deal in the summer of 2003 (see Figure 2.6): Recycle up to three items 
of select equipment, such as desktops, monitors, or notebooks, and get 
50 percent off the regular recycling price per unit. Any brand of com- 
puter, keyboard, mouse, monitor, printer, fax machine, scanner, or 

No computer should go to waste. 

Figure 2.5 Logo used for Dell's recycling messages. (Reprinted courtesy 
of Dell.) 


36 Corporate Social Initiatives: Six Options for Doing Good 




When you recycle your old PC or other electronics 
using Dell Recycling online. 

Limited Time Offer! 


Figure 2.6 A promotional offer by Dell to stimulate recycling. 
(Reprinted courtesy of Dell.) 

speakers were accepted for recycling. The offer also included a coupon 
for 10 percent off any online purchases of software and peripheral prod- 
ucts. Preliminary results suggested as much as a 200 percent increase in 
orders per day. 

Corporate Social Marketing: Printer Recycling 

In March 2003, Dell began offering a new product line, printers, and as 
part of this launch, promoted their new printer-recycling program. 

When customers purchase a Dell printer, they can now recycle their 
outdated printers at no additional cost and without leaving home. They 
can put it in the box their new Dell printer comes in, attach the prepaid 
shipping label supplied by Dell, and then go online to arrange for free 
pickup by Airborne at home or office. 15 

Corporate Philanthropy: Direct Qiving 

Dell's "Direct Giving" program gives employees a chance to contribute 
to the nonprofit of their choice through payroll deduction. One of the 
key beneficiaries of employees' generosity over the past few years is Earth 
Share of Texas. Earth Share in turn is a funding source for a variety of 
environmental projects and organizations. 

Community Volunteering: Eco-Efficiency Team 

Dell's "Eco-efficiency Team" is a forum for employees to bring ideas for 
environmentally oriented projects for Dell to consider and to then give 
employees volunteer opportunities in the community. Employees volun- 
teering at recycling events in Nashville and Austin not only added to 

McDonald's Corporation 


the productivity of the event, but also gave staff exposure to the com- 
pany's commitment to sustainable activities. 

Socially Responsible Business Practices: Design for 
Environment Program 16 

Dell's 2003 Environmental Report articulates their "Design for Environ- 
ment" program, giving examples of measures they take in product design 
to (a) extend product life span; (b) reduce energy consumption; (c) 
avoid environmentally sensitive materials, particularly those that may 
have an adverse impact on the environment at product end-of-life; (d) 
promote dematerialization (reduced volume of materials in a product); 
and (e) use parts that are capable of being recycled at the highest level. 

Dell participates in the U.S. Environmental Protection Agency 
(EPA) ENERGY STAR program to reduce power consumption of office 
equipment. The program allows manufacturers to partner with the EPA 
to design and certify products that meet or exceed federal government 
guidelines for low power consumption. Dell has actively participated in 
the program since 1993. 

Currently, more than 50 substances and compounds are restricted for 
use in the manufacture of Dell products and in the finished products 
themselves. Dell has set a goal for 2003-2005 to, at a minimum, main- 
tain a 20 percent reduction in the amount of lead shipped in displays 
when compared to 2002 levels. In addition, Dell has transitioned from 
cathode-ray tube (CRT) monitors to the liquid crystal display (LCD) 
technology used in flat-panel displays, resulting in a reduction in lead 
content. Dell is also actively working with resin suppliers to increase the 
usage of post-consumer recycled-content plastics. 17 


McDonald's Corporation is among Fortune's "Most Admired Companies" 
for social responsibility (2000-2002, 2004) and in 2001 was ranked in 
the Wall Street Journal as number five in reputation for corporate social 
responsibility. 18 

In April 2002, McDonald's issued its first Social Responsibility Re- 
port, in which Chairman and CEO Jim Cantalupo wrote: "McDonald's 
has the honor of serving more customers around the world than anyone 

38 Corporate Social Initiatives: Six Options for Doing Good 

else. With this privilege comes a responsibility to be a good neighbor, 
employer, and steward of the environment, and a unique opportunity to 
be a leader and a catalyst for positive change. We recognize the chal- 
lenges and the obstacles, but believe strongly in the importance of social 
responsibility." 19 

The report suggests a renewed and perhaps even more accountable 
commitment to being a socially responsible leader and states that it is a " 
beginning and a template by which we will measure our progress in the 
area of social responsibility." 20 The report then details a wide range of 
initiatives in the areas of community, environment, people, and market- 
place, and outlines related goals and plans, at the same time acknowledg- 
ing the challenges McDonald's faces in gathering information and 
measuring progress. 21 

In the summary list, note the themes of the well-being of families 
and children and giving back to the local communities in which they do 
business. A more detailed description of each of the programs follows. 

Cause Promotion: International Youth Camp 

In 2000, McDonald's was a major sponsor of the Olympic Youth Camp, a 
program that brought more than 400 young men and women from 
around the globe to Sydney, Australia, where they participated in a vari- 
ety of arts, sports, and cross-cultural activities. The Youth Camp was in- 
augurated at the 1912 Olympic Games in Stockholm, Sweden. 

McDonald's was the first global company to sponsor the National 
Olympic Committee (NOC) selection of the 2000 Sydney Youth Camp 
participants from nearly 200 countries around the world. Participating 
McDonald's restaurants and NOCs worldwide worked together to select 
two McDonald's Olympic Achievers from each country to attend the 
Sydney 2000 Olympic Youth Camp. 22 Once on site, McDonald's hon- 
ored these outstanding young corporate citizens through an interna- 
tional news event in their honor. McDonald's reached out to media to 
help communicate the importance of supporting young people who sup- 
port their communities with such good works. 

Cause-Related Marketing: World Children's Day 

On November 20, 2002, a worldwide fundraising effort involved Mc- 
Donald's restaurants from New York to New Zealand in more than 100 

Table 2.3 Examples of Corporate Social Initiatives for McDonald's 










Soeial Marketing 





Supporting social 

Donating a 


Making direct 

Providing volunteer 

Adapting and 

causes through 

percentage of 

behavior change 

contributions to a 

services in the 


promotions to 

revenues to a 


charity or cause 




specific cause 



based on 

practices and 


product sales 

investments that 


support social 






Ronald McDonald 



sponsored the 

earmarked $1 

promotes timely 

House offers places 


changed to 

Olympic Youth 

for children's 


to stay for families 

meals for 


Camp program 

causes from 


with seriously ill 

professionals and 

packaging and 

held in 2000 in 

the sale of Big 


volunteers at 


Sydney, Australia 

Macs and 

September 11 


other items on 

disaster sites 





November 20, 

40 Corporate Social Initiatives: Six Options for Doing Good 

countries worldwide (see Figure 2. 7). 23 All activities were intended to 
raise funds and awareness for Ronald McDonald House Charities and 
other local children's causes. 24 

Promotional messages promised that at every participating McDon- 
ald's restaurant, a donation would be made to children's charities based 
on sales of specific items. In the United States, for example, a donation 
of $ 1 was made to children's charities for every Big Mac, Egg McMuffin, 
Happy Meal, and Mighty Kids Meal sold. This offer was publicized via all 
major communication vehicles, including the Internet, e-mail, televi- 
sion, radio, and point-of-purchase in restaurants. 

Additional activities included special events around the globe on 
November 20, with a launch in the New York Times Square McDonald's 
Restaurant, where famous celebrities and athletes performed the "World 
Children's Day" song and worked behind counters, and a concert was 
given with celebrities including Celine Dion. 25 

More than $12 million was raised in 24 hours, and sales increases 
varied from 5 percent in some countries to as much as 300 percent in 
others. These results did not go without challenges. Managers involved 
in the event coordination reported unique issues, including finding an 
appropriate date and managing 100-plus countries with varying fundrais- 
ing laws and cultures. 

Figure 2.7 McDonald's logos used to promote World Children's Day. 
(Used with permission from McDonald's Corporation.) 

McDonald's Corporation 


Social Marketing: Immunize for Healthy Lives® 

Vaccine-preventable diseases like measles, chicken pox, polio, and he- 
patitis B are still a threat to children, according to the American Acad- 
emy of Pediatrics (AAP), so it's important to immunize children on 
time. To help children and families, Ronald McDonald House Charities 
has teamed up with the AAP and health care providers around the 
United States on "Immunize for Healthy Lives," an immunization educa- 
tion program in existence since 1994- 

August is the back-to-school vaccination time period, when most par- 
ents take their school-aged children to be immunized before returning to 
the classroom. But health professionals also recommend that vaccinations 
begin at infancy to protect against meningitis and pneumonia. By age two, 
children can be protected from more than 1 1 preventable diseases. 

Ronald McDonald House Charities is committed to the health and 
well-being of children and families. By working with health care providers 
around the country, the "Immunize for Healthy Lives" program educates 
parents on the importance of timely immunizations so they can help their 
children stay healthy. Figure 2.8 shows a tray liner created for use in Mc- 
Donald's restaurants to provide parents with helpful information. 

Local communities around the United States have taken on special 
activities to promote the "Immunize for Healthy Lives" campaign: 

• In North Carolina, immunization schedules are distributed through 
nearly 300 McDonald's restaurants throughout the state, with the 
campaign reaching up to 13 million customers in a month. 

• In Harrisburg, Pennsylvania, Health Department nurses visit par- 
ticipating McDonald's restaurants to review children's immuniza- 
tion records. Nurses also give free McDonald's coupons for ice 
cream to parents asking, "Do my kids need shots?" 

Corporate Philanthropy: Ronald McDonald House Charities 

The relationship between McDonald's Corporation and Ronald Mc- 
Donald House Charities and its programs dates back to the inception 
of the charitable organization. Today, one can find support and partici- 
pation from McDonald's Corporation, its franchisees, crew members, 
suppliers, and business partners at every level of the charity's activity — 
United States, international, corporate, regional, and local. Members 

42 Corporate Social Initiatives: Six Options for Doing Good 

Figure 2.8 McDonald's tray liner encouraging timely immunizations 
for children. (Used with permission from McDonald's Corporation.) 

of the McDonald's family serve as volunteers on the boards and com- 
mittees of the local chapters, working alongside other members of their 
community. Together they tackle the challenges of operating a public 
charity — raising necessary funds and awareness and delivering program 
services to children and their families. 

Ronald McDonald House Charities creates, finds, and supports pro- 
grams that directly improve the health and well-being of children world- 
wide. It is a nonprofit, 501(c)(3) organization with more than 181 local 
chapters currently operating in 48 countries. Each local Ronald McDon- 
ald House Charities chapter is a separate public charity, operated by a lo- 
cal board of directors. 

The cornerstone of Ronald McDonald House Charities is the 
Ronald McDonald House program, which provides a home away from 
home for families of seriously ill children undergoing treatment at hospi- 
tals far from their own homes. The first Ronald McDonald House was es- 

McDonald's Corporation 


tablished in Philadelphia in 1974- Today, there are more than 235 
Ronald McDonald Houses in more than 25 countries (see Figure 2.9). 

In addition to its cornerstone program, Ronald McDonald House 
Charities supports a variety of other programs, which include Ronald 
McDonald Family Rooms, Ronald McDonald Care Mobiles, and schol- 
arships. The charity also awards grants to other organizations that di- 
rectly improve the health and well-being of children. To date, Ronald 
McDonald House Charities' national body and global network of local 
chapters have awarded more than $400 million in grants to children's 
programs worldwide. 

Community Volunteering: Disaster Relief 

McDonald's, working through owner/operators, employees, and suppli- 
ers, has a longtime record of helping communities hit by tornadoes, 

Figure 2.9 Ronald McDonald House programs provide a home away 
from home for families of seriously ill children. (Used with permission 
from McDonald's Corporation.) 

44 Corporate Social Initiatives: Six Options for Doing Good 

hurricanes, floods, earthquakes, riots, or other disasters. McDonald's 
has partnered with American Red Cross and its International Red 
Cross network to provide food and other support to disaster victims, 
meals for the professionals and volunteers on the scene to aid them, 
and a haven of safety for others in the community. 26 

On 9/11 and in the weeks that followed, McDonald's provided more 
than 750,000 free meals around the clock at McDonald's mobile restau- 
rants set up near the disaster sites in New York City, at the Pentagon, 
and in Pennsylvania (see Figure 2.10). At each location, 45-foot'long 
portable units served McDonald's Quarter Pounders, Chicken Mc- 
Nuggets, bottled water, and soft drinks to feed recovery workforces. 27 

Socially Responsible Business Practices: Recycling 

Several activities represent a commitment to progress in reducing pack- 
aging volume and adding recycled content: 

• In the early 1990s, in most parts of the world, McDonald's 
changed its carryout bags from bleached, 100 percent virgin paper 

Figure 2.10 McDonald's provided free meals near 9/11 disaster sites in 
New York City. (Used with permission from McDonald's Corporation.) 

McDonald's Corporation 


fiber to unbleached, recycled content. During that same period, 
McDonald's purchased more than $4 billion worth of products 
made from recycled materials for use in the construction and op- 
eration of restaurants worldwide. McDonald's USA recently 
switched to a 40 percent recycled-content white bag, while mak- 
ing other packaging changes to offset the increased environmen- 
tal impact. 

• In 2002, McDonald's purchased more than $460 million in recy- 
cled packaging materials and reduced its packaging materials by 
an additional 35 million pounds (see Figure 2.11). 

Although a process is in place to work with suppliers to find ways to 
streamline packaging and minimize use of resources, broad-based solu- 
tions are challenged by differences around the world in safe food require- 
ments, local supplier availability, cultural differences, waste management 
practices, and infrastructure. 28 

To support McDonald's goal of sustainability, a Global Environ- 
mental Council (GEC) was formed in 2002 to identify global priorities, 

Figure 2.1 1 In 2002, McDonald's reduced packaging materials by 35 
million pounds. (Used with permission from McDonald's Corporation.) 

46 Corporate Social Initiatives: Six Options for Doing Good 

initiatives, and projects. It reports to the Social Responsibility Steering 
Committee established by the board of directors. 29 


Most corporate social initiatives under the corporate social responsibil- 
ity umbrella fall within one of the following distinct categories: cause 
promotions, cause-related marketing, corporate social marketing, corpo- 
rate philanthropy, community volunteering, and socially responsible 
business practices. 

Though there are commonalities among these initiatives (i.e., simi- 
lar causes they are supporting, partnerships that are formed, and commu- 
nication channels that are used), each has a characteristic that makes it 
distinct. Cause promotions are distinguished by the fact that they are 
supporting a cause by increasing community awareness and contribu- 
tions to the cause. Cause-related marketing is unique in that donations 
to a cause are tied to the corporation's product sales volume. Corporate 
social marketing is always focused on a goal of influencing a behavior 
change. Community volunteering involves employee and related fran- 
chise and retail partners' donation of their time in support of a local 
cause. Corporate philanthropy entails writing a check or making a di- 
rect, in-kind contribution of corporate services and resources. And cor- 
porate socially responsible business practices, as implied, relate to the 
adoption of discretionary business practices and investments that then 
contribute to improved environmental and community well-being. 

Why is it important to develop these distinctions? As with most dis- 
ciplines, awareness and familiarity with tools in the toolbox increases the 
chances they will be considered and then used. As noted in Chapter 1, 
traditional corporate giving and citizenship focused primarily on one of 
these initiatives, philanthropy. As we have seen in the examples pre- 
sented in this chapter, a more strategic and disciplined approach in- 
volves selecting an issue for focus and then considering each of the six 
potential options for contributing to the cause. 

Based on the in-depth examples for Washington Mutual, Dell, and 
McDonald's, a few observations are noteworthy at this point: 

• A corporate theme for social responsibility can be expressed in all 
six of the initiatives. Washington Mutual's K-12 education focus 



is reflected in each of the initiatives described. Based on reviews 
of many corporate social responsibility programs, this model can 
be very effective for connecting the corporation to a cause, as will 
be described in Chapter 9 concerning best practices. It is, how- 
ever, currently quite unusual. 

• It is more common for a corporation to have several themes, and 
for themes to be reflected by only a few initiatives. Examples pre- 
sented for McDonald's covered several themes: children's health, 
children and families with special needs, disaster relief, and envi- 
ronmental stewardship. 

• One campaign may integrate several initiatives. For example, 
Starbucks has a program called "Starbucks Make Your Mark" that 
recruits volunteers for assistance with local community and non- 
profit projects such as cleanup of trails and parks. This campaign 
has an element of cause promotion (i.e., recruiting customers in 
their stores to sign up for projects by visiting It 
also has an element of cause-related marketing, as it promises to 
make a contribution to the nonprofit sponsor based on the num- 
ber of volunteer hours given to the project. And it has a commu- 
nity volunteer component, as staff in the Starbucks partner stores 
are also encouraged to show up for the event. 

Finally, it is useful to note other terms that are used to label these 
initiatives, to underscore the distinctions. Cause promotions may be 
most similar to programs sometimes described as cause marketing, 
cause sponsorships, cause advertising, co-branding, or corporate spon- 
sorships. Cause-related marketing is included by some when describ- 
ing cause marketing or co-branding programs. Corporate social 
marketing may be considered a subset of cause marketing. Corporate 
philanthropy may be expressed as corporate giving, community giving, 
community development, community involvement, corporate social 
investing, or community outreach. Community volunteering is often 
covered when referring to community service, community develop- 
ment, community relations, community involvement, community 
outreach, community partnerships, and corporate citizenship pro- 
grams. And the term socially responsible business practices is for some 
synonymous with corporate social responsibility, corporate citizenship, 
and corporate commitment. 

48 Corporate Social Initiatives: Six Options for Doing Good 

As noted earlier, the delineation of these distinct subcategories may 
help increase consideration of these initiatives and may make under- 
standing and application of the keys to success for a particular initiative 
more likely. The following six chapters outline each initiative's unique 
and recommended circumstances for consideration and keys for success- 
ful development and implementation. 



Cause Promotions: 
Increasing Awareness and 
Concern for Social Causes 

We're all in it together. We're an eclectic collective of environmental ad- 
vocates along with some innovative ice cream and music makers , working 
in concert to tackle the man-made problem of global warming.' 

— Introduction to the "One Sweet Whirled" 
campaign created by Ben & Jerry's,, and the 
Dave Matthews Band 

In a cause promotion a corporation provides funds, in-kind contribu- 
tions, or other corporate resources to increase awareness and concern 
about a social cause or to support fundraising, participation, or volun- 
teer recruitment for a cause. 

Persuasive communications are the major focus for this initiative, with 
an intention to create awareness and concern relative to a social issue 



Corporate Cause Promotions 

and/or to persuade potential donors and volunteers to contribute to the 
cause or participate in activities to support the cause. Successful cam- 
paigns utilize effective communication principles, developing motivating 
messages, creating persuasive executional elements, and selecting effi- 
cient and effective media channels. Campaign plans are based on clear 
definitions of target audiences, communication objectives and goals, 
support for promised benefits, opportune communication channels, and 
desired positioning. 

Cause promotion is distinguished from other corporate social initia- 
tives primarily by the emphasis on promotional strategies. 

• It differs from cause-related marketing in that contributions and 
support are not tied to company sales of specified products. 

• It differs from social marketing in that the focus is not on influ- 
encing individual behavior change. Although cause promotion 
campaigns have calls to action, they are most commonly in the ar- 
eas of contributing, such as by donating money or time or by sign- 
ing petitions. 

• It differs from philanthropy in that it involves more from the 
company than simply writing a check, as promotional campaigns 
will most often require involvement in the development and dis- 
tribution of materials and participation in public relations activi- 
ties, and will include visibility for the corporation's sponsorship. 

• Although a cause promotion may include employee volunteerism, 
it goes beyond this to participating as well in the development 
and implementation of promotional materials. 

• It differs from socially responsible business practices in that the fo- 
cus is primarily on external communications, as opposed to inter- 
nal operations, and the target audiences for the promotions are 
primarily outside the organization. 

Historically, cause promotion has been a common form of corporate 
giving, along with philanthropy and employee volunteerism. It has in- 
volved everything from putting company logos on special events and 
advertisements for causes to contributing retail store space for promo- 
tional materials. 

Most commonly, corporations are approached to contribute to a 

Typical Cause Promotions 


cause promotion being developed by a nonprofit organization or consor- 
tium of agencies. In some cases, the corporation decides to support a so- 
cial cause and then reaches out to partner with organizations in the 
community associated with the cause. In a few cases, the corporation 
may go it alone, developing and managing the campaign internally. 


Corporate cause promotions most commonly focus on the following 
communication objectives. Examples of each will be explored in the re- 
mainder of this chapter. 

• Building awareness and concern about a cause by presenting motivat- 
ing statistics and facts, such as publicizing the number of children 
who go to sleep hungry in America each night or the number of 
dogs that are euthanized each year; by sharing real stories of people 
or organizations in need or who have been helped by the cause, 
such as one about a middle-aged man in a developing country who 
gets much-needed eyeglasses for the first time in his life, or a local 
hospital reporting they don't have the number of critical nurses 
they need to serve their community; or by presenting educational 
information, such as a brochure on warning signs for youth suicide. 

• Persuading people to find out more about the cause by visiting a spe- 
cial web site (e.g., one with information on nursing schools in the 
nation) or by requesting an informational brochure or tool kit 
(e.g., for tips on conducting a bake sale to raise money for food 
banks in their community). 

• Persuading people to donate their time to help those in need (e.g., 
employees in a retail store delivering eyeglasses, or citizens in a 
community hosting a bake sale to benefit local charities). 

• Persuading people to donate money that will benefit a cause (e.g., 
hosting a section of a corporate web site where visitors can donate 
to animal welfare charities). 

• Persuading people to donate nonmonetary resources, such as un- 
wanted cell phones and used clothing (e.g., for women's shelters). 


Corporate Cause Promotions 

• Persuading people to participate in events, such as attending an art 
show featuring minority professional photographers, participat- 
ing in a fundraising walk, or signing a petition to ban animal 

As outlined in Table 3.1, corporations participating in cause 
promotions include manufacturers, retailers, service providers, and 
many others. Issues supported are varied as well and include environ- 
mental causes, hunger, housing, needs for health care and medical ser- 
vices, human rights, animal welfare, education, medical research, and 

By their very nature, cause promotion activities have a common 
theme of communications. They utilize publicity, printed materials, spe- 
cial events, web sites, and advertising, featuring the logo and key mes- 
sages of the company as well as those representing the cause. In 
addition, however, cause promotion campaigns may also include em- 
ployee involvement, messages on product labeling, and utilization of re- 
tail shelf space. 

Corporations most often partner with nonprofit organizations whose 
mission is related to the cause, as well as media partners, professional as- 
sociations, and special interest groups. Table 3.1 summarizes causes sup- 
ported by 10 major corporations featured in this chapter. 


Not surprisingly, many of the corporate benefits associated with cause 
promotions are marketing related: strengthened brand positioning and 
brand preference, increased traffic, and customer loyalty. In addition, fur- 
ther benefits flow from providing customers and employees opportunities 
and convenient ways to contribute to causes, and are created by forging 
new and strong partnerships with community organizations. 

Strengthens Brand Positioning 

Notice in the following example from Ben 6k Jerry's the role that brand 
position played in guiding the choice of a social issue, selecting an initia- 
tive, and forming partnerships. 

Table 3.1 Examples of Cause Promotion Initiatives 



Target Audiences 

Sample Activities 

Major Partners 

Ben & Jerry's Global warming 

Anyone who loves ice cream 
and cares about the 

Current customers 

New flavor of ice cream 

Concert tour 


Web site 
Public Relations 

Dave Matthews 


Animal adoption 

Customers in stores 
Potential dog and cat pet 

Raising money in stores and 

on web site 
Offering retail space for pet 


Animal shelters 



People with arthritis 
Those wanting to contribute 
to the cause 

Arthritis Walk promotion: 
Printed materials 
Web site 

T-shirts, banners, and booths 
at event 

Arthritis Foundation 

British Airways Children in need Travelers on British Airways 

around the world flights 

Providing envelopes for 

collecting change 
Flight crew promotions 
Web site 




Customers in stores 

Employee promotions in 

Children's Miracle 


Table 3.1 (Continued) 



Target Audiences 

Sample Activities 

Major Partners 



PARADE readers 

Feature articles 

"Great American Bake Sale" 

fundraising event 
Web site 

Share Our Strength 
Local food charities 




Art show in select stores 
Public relations 

Professional black 

The Body Shop 

Animal testing for 

Policy makers 
Cosmetics industry 

In-store signage 
Printed materials 

Labeling on packages 
Public relations 
Web site 

Animal rights and 
advocacy groups 

est Johnson 

Nursing shortages 

High school students 
College students 
Health care systems 

Recruitment materials 
Special events 
Public relations 
Web site 

Professional nursing 

Colleges and 

Health care systems 


Eyeglasses and 
eye care for those 
in need 

People in North America and 
developing countries in need 
of eyeglasses and eye care 

Eyeglass collection 
Employee volunteerism 
Printed materials 

Lions Club 

Web site 

Potential Corporate Benefits 


Example: Ben & Jerry's and Global Warming 

Ben & Jerry's mission statement is consistent with the creative 
approach taken in most of what they do. It has three parts, all 
considered essential and equal by the company: product and eco- 
nomic and social missions. Notice the words we have italicized 
in the product and social mission statements that follow, lan- 
guage that sets the stage for their brand positioning: 

"Product Mission: to make, distribute and sell the finest qual- 
ity, all natural ice cream and euphoric concoctions with a con- 
tinued commitment to incorporating wholesome, natural 
ingredients and promoting business practices that respect the 
Earth and the environment." 

"Social Mission: to operate the company in a way that ac- 
tively recognizes the central role that business plays in society 
by initiating innovative ways to improve the quality of life lo- 
cally, nationally, and internationally." 2 

This positioning must have made the decision to support aware- 
ness of global warming and to launch a cause promotion initia- 
tive easy. In April 2002, Ben & Jerry's teamed up with the Dave 
Matthews Band and to help fight 
global warming. Together, they created the "One Sweet 
Whirled" global warming campaign, intended to increase aware- 
ness of the reality of the threats from global warming and to 
learn more about what can be done. 3 

Campaign elements include a new flavor of ice cream, One 
Sweet Whirled (see Figure 3.1); a concert tour; a CD; a web site 
with related links; and public relations efforts to increase aware- 
ness and concern about global warming and to promote actions 
that individuals can take to make a difference (a social market- 
ing element of the campaign). 

In 2002 alone, the campaign generated 53,236 pledges to reduce 
carbon pollution, representing a potential reduction of 
187,486,501 total pounds; 63,967 letters sent to Congress; and 
12,570 new members. 


Corporate Cause Promotions 

Figure 3.1 Ben & Jerry's supports awareness of global warming with a 
special ice cream flavor and more. (Reprinted courtesy of Ben 6k Jerry's.) 

Builds Traffic and Customer Loyalty 

In the following example, the corporation benefits from a creative and 
natural donation of abundant resources — its store space — and the appeal 
of abandoned and homeless pets. 

Example: PETsMART® and Pet Adoption 

PETsMART Charities® creates and supports programs that save 
the lives of homeless pets (see Figure 3. 2). 4 They have a vision of 
"a lifelong, loving home for EVERY pet." Several initiatives sup- 
port this goal, including in-store adoption centers, in-store cam- 
paigns to encourage customer donations, and online fundraising. 5 

Potential Corporate Benefits 


With more than four million homeless pets euthanized every 
year, PETsMART, Inc. made the conscious decision not to sell 
cats and dogs. Instead, the company created their in-store PETs- 
MART Charities Adoption Centers, donating space to local an- 
imal welfare organizations so they can make homeless pets more 
visible and accessible to potential families. 6 PETsMART, Inc. 
donates more than $5 million annually in space and supplies for 
the adoption centers, and the charity works with more than 
2,700 animal welfare organizations across North America. These 
organizations keep 100 percent of their adoption fees and there 
is no cost to them to use the in-store Centers. 

The store and the PETsMART Charities also work together to 
implement a biannual "Just A Buck, Change Their Luck" 
fundraising campaign to help homeless pets. This event is held 
for three weeks in the spring and again in the fall. Customers are 
asked if they'd like to donate "just a buck" (or more) when they 
make a purchase. Customers who donate $10 or more receive a 
commemorative T-shirt. Those who donate $15 or more receive 
a limited edition tote bag. All of the more than 650 stores na- 
tionwide and in Canada participate in the campaign. Donations 
can also be made online, where the T-shirts and tote bags are 
also offered for donations of $15 and $20 respectively. 

Between 1994 and 2003, this program has saved the lives of 
more than 1.7 million homeless pets through the in-store adop- 
tion areas alone, and continues to save lives today. Consider as 
well the benefit to PETsMART in terms of the thousands, if not 
millions, of customers exposed to the effort, and, for those 
adopting a pet, their likelihood of returning to a PETsMART 
store for food, needed supplies, and grooming services. 7 

a Kites. 

Figure 3.2 PETsMART provides space for in-store adoption centers 
for homeless pets. (Printed with permission from PETsMART, Inc.) 


Corporate Cause Promotions 

Creates Brand Preference with Target Markets 

Direct competitors of the Aleve brand might find this selection of an ini- 
tiative and partnership enviable. 

Example: Aleve and Arthritis Foundation 

In 2002, Aleve began to market more stringently to consumers 
with arthritis. In order to generate brand awareness among 
these consumers, Aleve developed a partnership with the 
Arthritis Foundation and became the National Presenting 
Sponsor of the Arthritis Foundation's nationwide Arthritis 
Walk event. This relationship has helped Aleve to dissemi- 
nate its key messages of strength and efficacy to the more than 
70 million Americans who have arthritis. Upon initial discus- 
sions, Aleve and the Arthritis Foundation quickly realized 
that they had the same goal at heart: to help consumers re- 
lieve their arthritis pain and restore their mobility so they can 
get back to doing the things they love to do. The sponsorship 
of the Arthritis Walk and the partnership have provided bene- 
fits to both Aleve and the Arthritis Foundation, a true win- 
win proposition. 

The 2003 Arthritis Walk, held in May in support of National 
Arthritis Month, attracted 24,767 participants, with men, 
women, and children with arthritis "leading the way wearing 
special shirts and blue hero hats to show they are taking control 
of their arthritis." 8 Aleve was able to further leverage this rela- 
tionship by integrating the Aleve logo into the overall Arthritis 
Walk logo appearing on all recruitment materials and promo- 
tional materials, including TV ads, T-shirts, banners, and web 
sites (see Figure 3.3). 

In addition to sponsoring the Arthritis Walk, Aleve has been 
able to incorporate this relationship into other elements of 
the marketing mix. Aleve has worked with the foundation in 
everything from advertising, where Aleve added a five-second 
tag to their commercials during May to publicize the Arthritis 
Walk, to packaging, where Aleve received the Arthritis Foun- 

Potential Corporate Benefits 


dation's Ease-of-Use Commendation for its Easy Open Arthri- 
tis Cap bottles. Also, Aleve was able to utilize the relation- 
ship in a cause-related marketing initiative. In 2003, Aleve 
offered a copy of the Arthritis Foundation's Walk With Ease 
book (an $11.95 value) for free when the consumer sent in a 
proof-of-purchase seal from a package of Aleve Easy Open 
Arthritis Cap. 

Overall, Aleve's relationship with the Arthritis Foundation and 
the full integration of that relationship into all elements of the 
marketing mix has allowed Aleve to generate greater brand 
awareness and establish its authority in arthritis pain relief. The 
value of this relationship and the trust it has helped Aleve to es- 
tablish with consumers is immeasurable. 

The Arthritis Foundation has also greatly benefited from 
this relationship by increasing awareness, increasing participa- 
tion in the Arthritis Walk events, and driving consumers to 
their 800 number and web site for helpful information on 

Figure 3.3 Aleve increases awareness and participation in Arthritis 
Walk events. (Reprinted courtesy of Arthritis Foundation.) 


Corporate Cause Promotions 



iiklren around the world 

Figure 3.4 British Airways provides an envelope to make it easy for 
customers to donate onboard to UNICEF. (Reprinted courtesy of 
British Airways.) 

Provides Customers Convenient Ways to Contribute and Participate 
in Causes 

The corporate sponsor in the following example makes it easy for the 
customer to say yes and perhaps even difficult to say no. 

Example: British Airways and Change for Good 

An estimated 16 million Americans travel to Europe each year, 
and chances are they arrive home with foreign currency in their 
pockets and purses. In 1994, British Airways began offering pro- 
motional support to the United Nations Children's Fund 
(UNICEF) by collecting currency from customers on board 
British Airways flights. 

Through this program called "Change for Good," passengers can 
donate unwanted foreign coins and notes at any time during the 
flight, using envelopes they find at their seat or by requesting 
one from the cabin crew (see Figure 3.4). It is reported that 
many of the crew members are enthusiastic enough about the 
program to also make voluntary announcements during flights 
and move through the cabins to collect the envelopes. British 
Airways then works with UNICEF in decision making regarding 
which countries will be recipients of donations. 9 

Potential Corporate Benefits 


The conversion to the euro by 12 European countries in 2002 
created a new promotional opportunity for the partners, solv- 
ing the problem of what to do with currencies no longer usable 
in 12 European countries. 10 Promotional messages stressed 
that UNICEF will still be able to convert these currencies. 11 

By the year 2002, British Airways had raised over $31 million 
(U. S. dollars) for UNICEF programs, helping with projects in 
over 50 countries around the world. Funds raised by British Air- 
ways represented an estimated half of the total amount raised by 
UNICEF "Change for Good" programs, in part due to the fact 
that this program runs year-round on all routes. 12 

Provides Opportunities for Employees to Qet Involved 
in Something They Care About 

Imagine the following cause promotion, which raises money in retail 
stores for local children's hospitals, if it were undertaken without the par- 
ticipation and enthusiasm of employees. Consider, as well, that partici- 
pation is voluntary and the enthusiasm apparently spontaneous. 

Example: Wal-Mart and Children's Miracle Network 

The Wal-Mart Foundation makes it clear in its mission state- 
ment that its emphasis is on its associates, their children, fam- 
ilies, and local community. Wal-Mart believes this grassroots 
style of giving provides opportunities for its associates to iden- 
tify and then support causes that will improve the quality of 
life right in their own communities (see Figure 3.5). It further 
explains that its priority funding areas include children. "Chil- 
dren are the heart, soul, and future of any community, so we're 
proud to be involved at the local level in programs that bene- 
fit children. It is our fondest wish that each and every child 
has the opportunity to lead a healthy, happy, and fulfilling 
childhood." 13 

Corporate sponsorship of Children's Miracle Network (CMN) 
then is not surprising, and the direct involvement of associates is 
apparently key to the more than $250 million raised for 170 


Corporate Cause Promotions 

children's hospitals since 1988. In 2002 alone, associates nation- 
wide raised more than $34 million for CMN. 14 

Children's Miracle Network says, "Wal-Mart associates love to 
reach impossible goals, especially when it comes to helping 
kids." For example, one store created a "crazy hat" campaign 
where associates wore "goofy-looking hats," persuaded cus- 
tomers to donate dollar bills, and then attached them to their 
hats. In two months, this store raised $6,000 through crazy 
hats alone. A store manager reported that they had fun com- 
peting with each other, making comments such as, "I raised 
one hundred and two dollars last Saturday with my crazy hat." 
They are evidently engaging the customers as well; one associ- 
ate overheard a customer shout, "That dollar on that hat is 
mine!" 15 

In 2002, Wal-Mart received the Ron Brown Award, the highest 
Presidential Award recognizing achievement in employee rela- 
tions and community initiatives. 

Creates Partnerships 

Any nonprofit organization or cause is fortunate when a strong media 
partner joins the promotional effort. In the following example, it would 
appear Parade magazine reaped the rewards as well. 


Figure 3.5 Logo used for Wal-Mart Foundation's community 
involvement program. (Reprinted courtesy of Wal-Mart.) 

Potential Corporate Benefits 


Example: Parade Magazine and Hunger 

In the spring of 2003, Parade magazine and Share Our Strength, 
a leading antihunger organization, launched "The Great Ameri- 
can Bake Sale," a cause promotion to raise awareness of child- 
hood hunger in this country and funds for hunger relief. The 
campaign, which launched in April 2003 and ran through July, 
encouraged anyone and everyone across the country to host a 
bake sale in their community and/or to buy items from a Great 
American Bake Sale event. Proceeds were sent to Share Our 
Strength, which granted 75 percent of the net funds to local 
hunger-relief organizations in the states where the funds were 
collected. The remaining funds were targeted for high-risk areas 
and populations and for public policy advocacy. Sponsors in- 
cluded ABC Television Network, Betty Crocker, Tyson Foods, 
Inc., Reynolds Consumer Products, and numerous prominent 
American chefs. 16 

The event was launched with a cover story in Parade magazine, 
which included the statistic that "Tonight 13 million children in 
the United States may go to bed hungry." (See Figure 3.6.) As of 
January 2004, Parade distributed by more than 335 Sunday news- 
papers, has a circulation of 35.7 million and an estimated reader- 
ship of more than 78 million. 17 Other activities to promote the 
Great American Bake Sale included mention in select corporate 
sponsors' advertising as well as on sponsor web sites. ABC inte- 
grated the bake sale plot into an episode of its hit series Eight 
Simple Rules for Dating My Teenage Daughter. The cast, including 
the late John Ritter, appeared at bake sale events around the na- 
tion and recorded public service announcements to further pro- 
mote the program. 

In their October 5, 2003, issue, Parade reported that the Great 
American Bake Sale had raised $1.1 million to fight childhood 
hunger in the Untied States. An estimated 375,000 people par- 
ticipated by baking or buying goods. More than 500 companies 
contributed resources. 18 The partners have already planned a re- 
peat in 2004, adding additional elements, including a free kit for 
to those who register to help plan and produce bake sales. 

64 Corporate Cause Promotions 

Figure 3.6 Parade magazine helps raise awareness and funds for hunger 
relief. (Reprinted courtesy of Parade Publications.) 

Strengthens Corporate Image 

Nordstrom is well known for its customer service, and its commitment to 
diversity is one factor that has contributed to this strong reputation. 

Example: Nordstrom and Diversity 

One of the main sections listed on Nordstrom's home page under 
"About Nordstrom" — right up there with "Store Locations" and 

Potential Corporate Benefits 


"Investor Relations" — is "Diversity Affairs." A visit to this sec- 
tion is reminiscent of many other corporations' entire corporate 
social responsibility section, with separate write-ups on their 
"Diversity Affairs Mission Statement," "Employment Statistics," 
"Minority Recruitment and Support," "Diversity in Advertis- 
ing," "Supplier Diversity Program." "Community Service" is a 
subset within this section. 

An introduction in this section sets the background for an ap- 
parently strong commitment: "There is something unique about 
Nordstrom that goes beyond our merchandise, our stores, and 
even our renowned services. It's our people. Our employees 
make Nordstrom the nation's premier retailer — and diversity is a 
key component of that winning combination. . . ." 19 

A cause promotion hosted by Nordstrom in February 2003 
and again in 2004 is representative of this value and commit- 
ment. A press release announced that in celebration of Black 
History Month, Nordstrom would be showcasing during the 
month of February the work of African-American photogra- 
phers in a premiere exhibit titled "Love Now," with works of 
"photographers' interpretation of love in our times." The ex- 
hibit was displayed in select Nordstrom stores and was consid- 
ered "a public tribute to the art and talent of black 
professional photographers." 

It is also consistent with this commitment that Nordstrom "reg- 
ularly advertises in both local and national minority publica- 
tions including Essence, Minority Business News USA, Hispanic 
Business, Hispanic, Catalina, Minority Business Entrepreneur, Black 
Enterprise and Ability magazine. In its mainstream advertising, 
Nordstrom has long been committed to featuring models of color 
and models with disabilities in at least one-third of its advertise- 
ments." 20 (See Figure 3.7.) 

Since 1993, Nordstrom has been named by Hispanic magazine as 
one of the 100 best companies offering employment opportuni- 
ties for Hispanics. In 2003, Fortune magazine named Nordstrom 
to its "100 Best Companies to Work for in America" list, for the 
seventh year in a row. Fortune magazine also named Nordstrom 
to its "Best Companies for Minorities" list four out of the five 


Corporate Cause Promotions 

years since it began the list. Asian Enterprise magazine selected 
Nordstrom as one of the "Best Companies for Asian Pacific 


As with most campaigns and programs that are promotional in nature, 
several potential downsides for the corporation should be kept in mind 
during the decision-making and planning process. 

Visibility for the corporation can get lost. Most managers considering 
major sponsorship of a social issue are interested in ensuring visibility for 

\sbwdownt enjoj 

'i' 1 »■■ "> I--" ] NORDSTROM 

Figure 3.7 Nordstrom's advertising represents their corporate 
commitment to diversity. (Reprinted courtesy of Nordstrom. ) 

Potential Concerns 


their company on promotional materials in return for the investment of 
corporate resources, often funded by the marketing department. One 
could argue that otherwise, it is a philanthropic initiative ("just writing a 
check")- Many would consider the placement of Aleve's logo on the 
Arthritis Walk materials an ideal model. This strategy, a co-branding ap- 
proach, positions the company as a partner in the cause. Contrast this 
with the perceived commitment of an organization that is in a lineup of 
three to five corporate logos across the bottom of promotional materials. 

Most promotional materials are not sustainable. Brochures, fliers, 
public service announcements, news articles, special events, even an- 
other T-shirt, water bottle, or baseball cap can be here today and gone 
tomorrow. Managers are encouraged to consider a sustainable compo- 
nent in the campaign, one such as the new flavor of ice cream developed 
by Ben & Jerry's, an element that provides campaign messaging opportu- 
nities as well. 

Tracking total investments and return on promotional investments is 
especially difficult. Many report that not only is it difficult to track re- 
sults for the company from the promotional effort, it is also difficult to 
track the actual expenditure of corporate resources, especially nonmone- 
tary contributions (e.g., employee time, retail store space). As stated 
early in the chapter, the intention of a cause promotion is often just to 
increase awareness and concern regarding a cause, frequently without a 
call to action. This is harder and more expensive to measure than 
changes in behavior or redemption of coupons, for example, which can 
be accomplished through internal tracking systems. Changes in aware- 
ness and levels of concern typically require more quantitative research, 
adding to the costs of the effort. How, for example, would Nordstrom 
track the benefit of the art show to the organization (or to the cause, for 
that matter) 1 

You may get swamped with requests for contributions from other 
organizations connected to the cause. As you will read in the next 
section on Johnson & Johnson's Campaign for Nursing's Future, this 
highly visible campaign that was focused on nurse recruitment and re- 
tention generated inquiries from numerous related organizations. Re- 
sponding to requests then adds even more to the expenditure of effort 
and time. 


Corporate Cause Promotions 

This approach requires more time and involvement than writing a 
check. PETsMART, for example, spends time and effort coordinating 
and supporting its in-store adoption programs, hosting sections of its cor- 
porate web site for donations from the general public, and collecting do- 
nations at checkout stands. 

Promotions are often easy to replicate, removing any competitive ad- 
vantage. As will be described in the next section, The Body Shop has 
been advocating against animal testing for cosmetics for more than 10 
years. There are few entry barriers for other cosmetic brands to also take 
"no animal testing" positions, even though it may be with lower levels of 
commitment. The consumer, however, has a hard time discriminating 
between claims. 


The following three cases offer perspectives from managers at The Body 
Shop, Johnson 6k Johnson, and LensCrafters in terms of keys to success- 
ful cause promotion initiatives. Their common themes reflect recom- 
mendations to carefully select an issue (up front) that can be tied to a 
business's products and company values. They say it should be a cause 
that management can commit to long-term, is a concern for customers 
and target markets, motivates employees, and has the most chance for 
media exposure. When developing cause promotion plans, take care to 
develop strong partnerships, incorporate and ensure visibility for your 
brand, and figure out a way to measure and track results. 

The Body Shop "Against Animal Testing" Initiative 

The Body Shop opened its first store in 1976 and is now a well-respected 
international retailer offering high-quality skin and body care products 
in 50 countries around the world through more than 1,900 outlets. The 
company is known by many for its values-driven business practices and 
cause promotion campaigns, including ones against animal testing 
within the cosmetics and toiletries industry. The following perspective 
from their head of communications and campaigns highlights the impor- 
tance of a long-term commitment and a willingness to stay the course in 
order for a campaign to achieve a win-win result. 

Keys to Success 


In 1990, The Body Shop launched the first in a series of public aware- 
ness campaigns against animal testing (AAT) in the cosmetic industry. 
We elected to campaign on this issue for a number of reasons: It was 
core to our beliefs as a business that animal testing was unacceptable 
in order to create a new cosmetic or toiletry product or ingredient; the 
issue was highly relevant to both our industry and the consumer; and it 
was an issue on which we could realistically make a difference. It was 
estimated in 2002 that over 35,000 animals were used in cosmetics 
tests every year throughout the European Union alone. 21 

This campaign was originally managed by Corporate Communi- 
cations and subsequently by the Values and Vision Department, 
working in partnership across the globe with campaign partners from 
the animal welfare movement. A particular emphasis was placed on 
the United Kingdom and European Union, with a focus on amend- 
ing proposed legislation relating to the sale and marketing of cosmet- 
ics in order to bring about a cosmetic animal test ban. 

Funding for this campaign is provided from our Communica- 
tions and Values departments, our franchisee network, and our char- 
itable Foundation. 

Promotional vehicles have included in-store and out-of-store 
communications and campaign materials, with considerable use of 
Anita Roddick in the early years, as a business leader calling on the 
cosmetic industry to take action to end animal testing. In-store cam- 
paigns included window posters, leaflets, the sale of badges and bags, 
and the collection of signatures on a campaign petition, promoted 
through our stores and by partner animal welfare groups to their sup- 
porters. Product labels state clearly that we are 'Against Animal 
Testing" (see Figure 3.8) and in terms of business practices, we were 



Figure 3.8 The Body Shop's logo used for advocacy efforts. (Reprinted 
courtesy of The Body Shop.) 


Corporate Cause Promotions 

the first cosmetic company to have supplier-monitoring systems in- 
dependently audited and certified. 

In terms of outcomes, we are proud to have helped reduce 
and to bring an end to cosmetic animal testing in countries such 
as the United Kingdom and the Netherlands and to have played a 
significant role in the European Union agreeing to a test ban that 
is due to come into force in 2009. In November 1996, The Body 
Shop presented the European Union (EU) the largest petition 
against animal testing in history — signed by over four million peo- 
ple calling on the EU to honor a commitment to stop the testing 
and sale of animal-tested cosmetic products. In November 2002, 
The Body Shop welcomed the news that Europe will ban cosmet- 
ics animal testing, due to come into force in stages over the next 
few years. 

As a result, The Body Shop is closely aligned with the issue of no 
animal testing for cosmetic purposes wherever you go in the world. 
The issue and the campaign have contributed to generating signifi- 
cant media coverage for The Body Shop and our ethics. In 1998, a 
survey of international chief executives that was reported in the Fi- 
nancial Times ranked The Body Shop the 27th most respected com- 
pany in the world. And we were the first international cosmetics 
retailer to be endorsed by leading animal protection groups under 
their Humane Cosmetic Standard. 

We offer others the following thoughts when aligning with a so- 
cial issue and developing campaign plans: 

• Select an issue that is extremely engaging for your customers 
and relevant to your industry and your products. 

• Choose initiatives that align with your company mission and 
business objectives, so that they are not seen to be peripheral 
by your internal and external publics. 

• Take on causes that will be motivating for your employees, 
recognizing that they will enjoy the opportunity to go beyond 
retailing to making a real difference on social issues. 

• Select issues that have the most chance to become main- 
stream, ones that are "winnable" enough to be popular with 
the media, public, and politicians but controversial enough to 
generate debate. 

Keys to Success 


• Once selected, commit wholeheartedly. Avoid short-term so- 
lutions, promises you can't fulfill, and ensure this is not 
viewed simply as a marketing exercise. 

• Recognize that you will be expected to demonstrate your 
commitments in your own corporate behavior, policies, and 

• Develop campaign goals with tangible outcomes that demon- 
strate sustainable solutions, ones that provide the best return 
for business and society. 

• Ensure that key stakeholders are engaged in your social initia- 
tives. Be clear about the level of commitment to a particular 
initiative, effectively manage expectations of all relevant 
stakeholders, and remember to communicate campaign suc- 
cesses with them and acknowledge their role in helping to 
bring about change. 22 

Johnson & Johnson's "Campaign for Nursing's Future" Initiative 

In 1943, Robert Wood Johnson wrote a credo for the company, a one- 
page document that outlined responsibilities to customers, employees, 
the community, and shareholders. Fulfillment of that credo is evident in 
the following description of their "Campaign for Nursing's Future." Pro- 
vided by the executive director for the campaign, this summary high- 
lights key components of this cause promotion initiative and measurable 
outcomes for their effort. 

Johnson 6k Johnson has a long history of working with nurses. In fact, 
the first line of our credo says, "We believe our first responsibility is to 
the doctors, nurses, and patients, to mothers and fathers and all oth- 
ers who use our products and services." Recognizing that our country 
was experiencing the most severe nursing shortage in our history, we 
launched the Johnson 6k Johnson "Campaign for Nursing's Future" in 
February 2002, a multiyear, nationwide effort to enhance the image of 
the nursing profession, recruit new nurses, and retain nurses currently 
in the system (see Figure 3.9). We knew we had the marketing skills 
to make a difference. When we created this program, which is man- 
aged by a corporate marketing executive, we made a commitment to 
invest at least $25 million towards this campaign. 


Corporate Cause Promotions 

Figure 3.9 Johnson & Johnson's logo used for a multimedia campaign 
to support the nursing profession. (Reprinted courtesy of Johnson 6k 

Campaign elements have included a national television, print, and 
interactive advertising campaign in English and Spanish, celebrating 
nursing professionals and their contributions to health care; a very 
visible public relations component with press releases, video news re- 
leases, and satellite radio tours, available to hundreds of media out- 
lets across the country; recruitment materials including brochures, 
pins, posters, and videos, also in English and Spanish, distributed 
free of charge to hospitals, high schools, nursing schools, and nursing 
organizations; fundraising for student scholarships, faculty fellow- 
ships, and grants to nursing schools to expand their program capac- 
ity; celebrations at regional nursing events to excite and empower the 
local nursing community; a web site ( 
about the benefits of a nursing career, featuring searchable links to 
hundreds of nursing scholarships and more than 1,000 accredited 
nursing educational programs; and activities to create and fund reten- 
tion programs designed to improve the nursing work environment. 

In terms of outcome for the cause, a Harris Poll in October 2002 
reported that 46 percent of 18- to 24-year-olds recalled the advertis- 
ing; 62 percent had discussed a nursing career for themselves or a 
friend; and among this group 24 percent said the commercials were a 
factor in their consideration. The web site traffic 
tallied 800,000 unique visitors, who spent an average of 15 minutes 

Keys to Success 


exploring the site. As of April 2003, the site has had more than nine 
million page views. Surveys showed that recruitment materials were 
being used by 97 percent of high schools and 73 percent of nursing 
schools. More important, 84 percent of nursing schools that received 
the materials reported an increase in applications/enrollment for the 
fall 2003 semester. Overall, the American Association of Colleges of 
Nursing reported that baccalaureate nursing school enrollments were 
up 8 percent. 23 In 2002, when the National Research Center for Col- 
lege and University Admissions surveyed over a million college-bound 
students, nursing and related careers ranked ninth among all profes- 
sions. This year (2003) nursing has moved into fourth place! More 
than 90,000 students ranked nursing as their first choice. 

We are especially pleased with the response, acknowledgment, 
and support of nurses and health care organizations around the 
world. Through the Johnson & Johnson Internet site alone, we have 
received more than 1,700 messages — the largest response to any sin- 
gle topic received by the web site. This is especially significant when 
you consider that the call to action in the commercials is for discov- and not Johnson 6k Johnson's web site. Many of the 
messages have come from nurses to thank us for recognizing and 
telling others about the importance of their profession. We continue 
to receive thousands of e-mails and letters every month. And we 
have been honored by numerous organizations, including American 
Organization of Nurse Executives, National Student Nurses Associa- 
tion, American Nurses Association, and NurseWeek. 

We think these successes can be attributed to several fundamen- 
tal strategies: 

• We chose an issue that mattered to our key publics, one of 
concern for leaders in the industry we serve as well as for our 
customers and the community at large. 

• We chose an issue consistent with our credo. 

• We developed relationships with others to support the cam- 
paign, organizations including health care systems, nursing 
schools, and professional associations around the country, or- 
ganizations important to our core business strategy as well. 

• We used a multimedia strategy with consistent messages in 
broadcast, print, publicity, special events, printed materials, 
videos, and on our web site. 


Corporate Cause Promotions 

And we want to acknowledge (and pass on) our challenges. It has 
been time-consuming dealing with the volume of requests we receive 
for funding from a variety of nursing constituencies who see the cam- 
paign and assume (perhaps) that Johnson 6k Johnson has unlimited 
resources. It is difficult to disappoint them. We also underestimated 
the amount of time and resources it would take to manage an initia- 
tive of this complexity, as we have only two full-time employees 
working on this campaign. 24 

LensCrafters' "Qive the Qift of Sight" Initiative 

Established in 1988, "Give the Gift of Sight" is a family of charitable vi- 
sion care programs providing free eye care and glasses to people in need 
in North American communities and in developing countries. All Gift 
of Sight programs are sponsored by Luxottica Retail (LensCrafters' par- 
ent company) and LensCrafters Foundation, in partnership with Lions 
Clubs International and other charities throughout North America. 

Two of these programs exemplify cause promotion initiatives. Their 
"Give New Life to Your Old Glasses" campaign encourages customers to 
donate their used glasses to those in need. Promotional materials (print 
and web site) ask customers to "Please help us continue our international 
missions by donating your old eyeglasses and sunglasses. Often the glasses 
people receive on our missions are the only glasses they will ever re- 
ceive." (See Figure 3.10 for a sample brochure.) Since 1988, 1,160,000 
pairs of glasses have been collected, recycled, and hand-delivered on in- 
ternational missions. In addition, they also encourage and accept cash 
donations to their Gift of Sight programs through their 501(c)(3) 
LensCrafters Foundation, online or through the mail, stressing the fact 
that LensCrafters Inc. covers more than 90 percent of LensCrafters 
Foundation overhead, so donations go directly to deliver glasses to needy 
people. 25 

The vice president of the LensCrafters Foundation offers the follow- 
ing perspective on the real key to success of the Gift of Sight program, 
and the true value and benefit to the company. 

Gift of Sight (GOS) requires the direct participation of LensCrafters 
employees. Because each person's eyeglass prescription and fit is 
unique, glasses must be hand-delivered by trained volunteers, captur- 
ing the energy and expertise of our people. This is what makes this 

Keys to Success 


Your old 
eyeglasses are 
a treasure! 


the Gift 

Lions Clubs 

Figure 3.10 Brochure used to promote donation of used glasses to 
those in need. (Reprinted courtesy of LensCrafters.) 


Corporate Cause Promotions 

program unique. A majority of LensCrafters' 18,000 employees par- 
ticipate in GOS in one form or another (assisting recipients in our 
stores, on our two Vision Vans, in community outreach programs, 
and on international optical missions to developing countries). 
Through GOS, our employees develop an emotional alignment with 
our company that's crucial to our competitive context. 

LensCrafters has chosen to differentiate itself from optical com- 
petitors with similar products through superior service. While we 
created GOS for its social benefits, we maintain and grow it because 
it helps us build a service'minded culture. Employees involved in GOS 
feel proud of the company and remain with it longer. We continue to 
expand GOS programs because we're convinced they provide terrific 
teambuilding and leadership training opportunities. What better 
way to teach teamwork, flexibility, creativity, and the power of a pos- 
itive attitude than to take 25 like-minded adults to a developing 
country for two weeks and challenge them to deliver exams and re- 
cycled glasses to 25,000 local people — knowing they will face elec- 
trical outages, equipment held up in customs, unfamiliar food, and 
strange accommodations. On 86 missions to 25 developing countries 
our teams have figured out how to work together to overcome obsta- 
cles. This learning is transferable to their stores and their lives. What 
better way to teach diversity than to challenge every store and home 
office department to partner up with local schools, senior centers, 
nursing homes, and shelters to help deliver free eye care to more 
than 500,000 people annually. 

For LensCrafters, building more dedicated employees is a com- 
petitive benefit. Through GOS, we give a higher level of meaning to 
our jobs so that no employee ever feels he or she is "just selling 
glasses." Delivering glasses to someone who's never seen clearly be- 
fore brings an immediate improvement. It's a magical moment, re- 
sulting in tears, hugs, and kisses, that opens the eyes of our 
employees as surely as those of our recipients. Gift of Sight is one of 
the reasons LensCrafters was rated by Fortune as one of the "100 Best 
Places to Work in America" for five consecutive years. 

We created LensCrafters Foundation, a 501(c)(3) public operat- 
ing charity, in order to conduct fundraising activities with our suppli- 
ers, employees, and local foundations. We raise about $1 million in 
cash (35 percent from employees) and $2 million in goods annually 
to supplement LensCrafters' commitment of overhead and staff (12 

When Should a Corporate Cause Promotion Be Considered? 7 7 

full-time people plus access to the expertise of every single store and 

In summary, principles that worked for us and may work for oth- 
ers include the following recommendations: 

• Focus your community service on your product. 

• Involve employees in hands-on giving. 

• Push program ownership to the local level. 

• Brand the program with a strong, single identity. 

• Forge partnerships. 

• Set, communicate, and track program goals. 


Assuming that a cause has been selected that the organization wants to 
support, the following circumstances should lead to considering a cause 
promotion initiative to support the cause, either in addition to other ini- 
tiatives or in preference to other initiatives: 

• When a company has easy access to the target markets, as did 
British Airways for Change for Good, PETsMART for animal 
adoption, and PARADE magazine for generating interest in bake 

• When the cause can be connected and sustained by a company's 
products, as with The Body Shop's product labeling and Ben 6k 
Jerry's new flavor and packaging. 

• When the opportunity exists to contribute underutilized in-kind 
services, such as in-house printing or corporate expertise, as evi- 
denced by Johnson 6k Johnson's contribution of marketing exper- 
tise to the "Campaign for Nursing's Future." 

• When employee involvement will support the cause and employ- 
ees get excited, as they were at Wal-Mart in support of Children's 
Miracle Network and at LensCrafters in delivering eyeglasses and 
eye care to those in need. 

• When a company wants to limit its involvement and commitment 
to raising awareness and concern, versus the often more difficult 


Corporate Cause Promotions 

effort of changing behaviors, handling and fulfilling calls to action, 
and creating infrastructures to support these efforts. 

• When there is a co-branding opportunity, as there was for Aleve 
with the Arthritis Foundation, where promotional materials will 
support the cause and the brand with target audiences. 


Perhaps the most important decision to be made once a social issue has 
been identified and a cause promotion initiative has been selected is to 
confirm whether the campaign will include partners and, if so, to iden- 
tify them. Campaign plans should then be developed together, up-front, 
as they will include critical decisions on target audiences, key messages, 
campaign elements, and key media channels. 

One of the most effective ways to make these decisions is to develop 
a document that will provide direction for developing messages, design- 
ing campaign elements, and selecting media channels. A useful tool is a 
creative brief, typically one to two pages in length. It will help ensure 
that all team members, including external partners, are in agreement on 
target audiences, communication objectives, and key assumptions, prior 
to the more costly development and production of communication ma- 
terials. Typically, a creative brief to support the development of a promo- 
tional campaign includes the following six sections: 

1. Target audience. This section includes a brief description of the 
target audience, including estimated size, demographics, geo- 
graphies, psychographics, and behavior variables. 

2. Communication objectives. This is a statement of what we want our 
target audience to know (facts, information), believe (feel), and 
perhaps do (e.g., donate or volunteer for a cause), based on expo- 
sure to our communications. 

3. What benefits to promise. This is the identification of key factors 
that will motivate target audiences to participate in volunteer ef- 
forts or to make donations — in other words.benefits they will ex- 
perience by taking these steps. 

4. Openings. Michael Siegel and Lynne Doner describe openings as 
"the times, places, and situations when the audience will be most 



attentive to, and able to act on, the message." 26 This information 
will be key for determining media channels. 

5. Positioning and requirements. This section describes the overall de- 
sired tone for the campaign (e.g., serious versus lighthearted), as 
well as requirements such as the use of corporate logos. 

6. Campaign goals. This is an important section to consider in select- 
ing media channels, as it outlines quantifiable goals for the cam- 
paign. These may include process goals (e.g., desired reach and 
frequency goals) or actual outcome goals (e.g., number of people 
to sign up for the race). 

This document will then lead to development of campaign elements in- 
cluding slogans, headlines, and copy; graphic images; materials; selection 
of media channels; evaluation plans; budgets; and implementation plans, 
including responsibilities and target dates for campaign activities. 


A corporate social initiative is categorized as a cause promotion when 
the core element of the effort is promotional in nature. Primary strate- 
gies utilized are persuasive communications. Communication objectives 
focus on building awareness and concern; persuading people to find out 
more; persuading people to donate their time, money, or nonmonetary 
resources to a cause; and/or persuading people to participate in events to 
benefit a cause. Most commonly, corporations partner with nonprofit 
organizations and special interest groups, although a few initiate and 
implement campaigns on their own. In many cases, the corporation is 
given visibility on promotional materials and in the media in exchange 
for its support. 

Most corporate benefits are marketing related, with advocates as- 
serting that a cause promotion can strengthen brand positioning, cre- 
ate brand preference, increase traffic, and build customer loyalty. Many 
corporations experience additional benefits, noting increased em- 
ployee satisfaction and the development of new and strong partners in 
the community. 

Several potential downsides for the corporation are inherent in these 
promotional campaigns: Visibility for the corporation can get lost; most 


Corporate Cause Promotions 

promotional materials are not sustainable; tracking investments and return 
on promotional investments is difficult; this endeavor, because of its visi- 
bility, may generate too many additional requests for support from other 
organizations connected to the cause; this approach requires more time 
and involvement than writing a check; and promotions are often easy to 
replicate, potentially removing any desired competitive advantages. 

Keys to success include recommendations to carefully select an issue 
(up-front) that can be tied to your products and your company values. It 
should be a cause that management can commit to long-term, that is a 
concern for your customers and target markets, motivates your employ- 
ees, and has the most chance for media exposure. When developing 
cause promotion plans, take care to connect the campaign to your prod- 
ucts, develop partnerships, incorporate and ensure visibility for your 
brand, and figure out a way to measure and track results. 

This initiative should be given serious consideration when a com- 
pany has easy access to a large potential target audience; when the cause 
can be connected and sustained by the company's products; when oppor- 
tunities exist to contribute to the campaign using in-kind services; when 
employees can get excited about the effort; when it's desirable to limit 
the company's involvement and commitment to just raising awareness 
and concern about an issue; and when there is a co-branding opportu- 
nity, versus being one of many sponsors. 

Steps in developing a plan begin with decisions regarding partner- 
ships. Then, working together, planning teams identify target audiences 
and develop key messages, campaign elements, media channels, evalua- 
tion plans, budgets, and implementation plans. 



Cause-Related Marketing: 
Making Contributions 
to Causes Based 
on Product Sales 

People often ask why American Express supports so many charitable or- 
ganizations around the world and what purpose such efforts serve for the 
company. The answer is easy — and it has been the same for the J 50 
years that American Express has been in business. We have a vested in- 
terest in the well-being of our communities. Moreover, many of our ma- 
jor philanthropic efforts are tied directly to the company's long-term 
business objectives. Finally, the company's philanthropic activities have 
added enormous luster to our brand over the years. 1 

— Mary Beth Salerno, President, 
American Express Foundation 

In cause-related marketing (CRM) campaigns, a corporation com- 
mits to making a contribution or donating a percentage of revenues 
to a specific cause based on product sales. Most commonly this offer 
is for an announced period of time and for a specific product and a 



Cause-Related Marketing 

specified charity. This link to product sales or transactions most distin- 
guishes this initiative, which contains a mutually beneficial under- 
standing and goal that the program will raise funds for the charity and 
has the potential to increase sales for the corporation. Contributions 
may be in actual dollar amounts (e.g., $4-95 donation for every high- 
speed Internet connection installed) or a percentage of sales (e.g., 50 
percent of revenues from sales of specified products will be donated to 
children's charities). 

The distinction from other corporate social initiatives is clear on 
several fronts. First, this is the only one of the six initiatives described 
in this book where corporate contribution levels are dependent on 
some consumer action. It is perhaps most similar to cause promotions, 
where the corporation is supporting awareness, concern, and public 
contributions to causes. The distinction is that with CRM, the corpo- 
ration then makes an additional contribution based on consumer re- 
sponse (e.g., matches miles that passengers donate to a cause). Second, 
CRM initiatives often require more formal agreements and coordina- 
tion with the charity; important activities include establishing specific 
promotional offers, developing co-branding advertisements, and track- 
ing consumer purchases and activities. Finally, this initiative typically 
involves more promotion, especially paid advertising. This makes 
sense, as there are anticipated economic benefits for the corporation to 
promote product sales. As a result, this initiative is most likely to be 
managed and funded by the corporation's marketing department. In 
ideal scenarios, a formal marketing plan is developed for the initiative, 
establishing goals and objectives, identifying target markets, develop- 
ing the marketing mix for the offer, and establishing evaluation and 
tracking mechanisms. 

Most regard the American Express campaign described in Chapter 
1 , supporting the Restoration of the Statue of Liberty, as the start of 
what has became known as cause-related marketing. The marketing 
world was watching and encouraged by the possibility this effort 
demonstrated — that a single, well-coordinated philanthropic effort 
could contribute to the company's bottom line and raise money for a 
charity as well. Subsequent public opinion research helped explain 
why, with the 1999 U.S. -based Cone/Roper Report indicating that 
two-thirds of consumers say they are likely to switch brands or retail- 
ers to one associated with a good cause, when price and quality are 
equal. 2 

Typical Corporate Cause-Related Marketing Initiatives 



Typical components of a cause-related marketing initiative are outlined 
in Table 4-1 and include one or more products that the corporation will 
promote, a cause that will be supported, and a charity or charities that 
will benefit from the effort. Although the range of corporations partici- 
pating in CRM initiatives is broad, it is perhaps most ideal for companies 
with products that have mass market appeal, large customer bases, and 
wide distribution channels, especially those in the financial services, 
consumer goods, airlines, and telecommunications industries. Several 
types of product links and contribution agreements are common, includ- 
ing the following: 

• A specified dollar amount for each product sold (e.g., Yoplait's 2003 
promotion that promised 10 cents to the Susan G. Komen Breast 
Cancer Foundation for each pink yogurt lid returned by Decem- 
ber 31). 

• A specified dollar amount for every application or account opened 
(e.g., Wells Fargo branches in Arizona the summer of 2003 donat- 
ing $10 to local schools for every consumer checking account 
opened with direct deposit). 

• A percentage of the sales of a product or transaction is pledged to the 
charity (e.g., 73 percent of the purchase price of Avon's Crusade 
Candle is returned to breast cancer causes). 

• A portion of the sale of an item, sometimes not visibly disclosed, will 
be donated to a charity (e.g., Windermere Real Estate's commit- 
ment that every time a sales associate sells a home, a portion of 
the commission goes to their foundation that benefits nonprofit 
agencies dedicated to the homeless 3 ). 

• The company matches consumer contributions related to product- 
related items (e.g., Northwest Airlines matches miles donated by 
passengers for children with medical needs for travel). 

• A percentage of net profits from sales of a product or products is 
pledged (e.g., Paul Newman pledging 100 percent of all profits 
and royalties after taxes from Newman's Own products for educa- 
tional and charitable purposes 4 ). 


Cause-Related Marketing 

• The offer may be for only a specific, designated product (e.g., $1 do- 
nated for every Big Mac sold) or it may be for several or all products 
(e.g., Avon's line of "pink ribbon" products). 

• It may be for a specific time frame (e.g., for Big Macs sold on World 
Children's Day) or open-ended (e.g., an affinity credit card for Ro- 
tarians that makes ongoing contributions to the International 
Foundation with every purchase). 

• The corporation may decide to set a ceiling for their contribution 
from sales (e.g., Lysol contributing five cents for each product 
coupon redeemed, up to $225,000). 

Although cause-related marketing campaigns support a wide range 
of causes, those with the most visibility are ones with the biggest 
followers, most commonly associated with major health issues 
(e.g., breast cancer, arthritis, heart disease, asthma, AIDS), children's 
needs (education, hunger, medical needs), basic needs (hunger, 
homelessness), and the environment (wildlife preservation, nature 

Typically, beneficiaries of funds raised are existing nonprofit organi- 
zations or foundations. However, a foundation or nonprofit is sometimes 
created by the corporation (e.g., the Windermere Foundation) to collect, 
manage, and distribute funds. Corporations may award funds to a variety 
of charities or may dedicate proceeds from a campaign to one specific or- 
ganization. Partnerships may include more than one corporation, as well 
as a public agency (e.g., schools). 

Table 4-1 presents examples of causes supported by nine major cor- 
porations featured in this chapter. 


By design, most corporate benefits from a cause-related marketing cam- 
paign are marketing-related. As the following examples demonstrate, 
successful initiatives can support efforts to attract new customers, reach 
niche markets, increase product sales, and build positive brand identity. 
In addition, such initiatives may also be one of the best strategies for rais- 
ing significant funds for a cause. 

Table 4. 1 Examples of Cause-Related Marketing Campaigns 



Apparent Target Audiences 

The Offer 

Major Partners 


Affinity cards for a 

wide range of nonprofit 
organizations and 
member associations 

Current and potential 
donors and members 
of associations, clubs 

Donations made by financial 
institution to charity based 
on charge card applications 
and activities 


organizations and 



Avon and the Avon 

Breast cancer 

Women who buy 
cosmetics and care 
about the breast 
cancer cause 

Percentage of sales of "pink 
ribbon" products donated 
to the Avon Foundation 

Avon sales 


Breast cancer 
research and 
patient services 


Tobacco cessation 

Family and friends 
of women who 

$5 donated with every 
sterling silver Circle of 
Friends™ pin sold 

American Legacy 


Litter prevention and 

Purchasers of 
disinfectants and 

$.05 donation for specific 
Lysol products associated 
with coupon redemptions 

Keep America 

cleaning products 


Table 4. 1 (Continued) 



Apparent Target Audiences 

The Offer 

Major Partners 


School equipment and 

Parents with kids in 
school grades K-12 

One percent of purchases 
donated to eligible K-12 
school of the guest's choice 
and 0.5 percent of Target 
Visa purchases made 

Public schools 

AT&T Broadband/ 

Families of sick 

Internet users 

Donation of $7 with 

installation of high-speed 
Internet service 

Ronald McDonald 
House Charities 

Athena™ Water 

Women's cancer 

People concerned 
with women's 

100 percent of net profits 
donated to medical 

Research and health 
care organizations 

Northwest Airlines 

Travel for sick children 

Members of 

Northwest mileage 

Member miles that are 
donated are matched by 

Children's charities 

American Express 


Credit card 
customers and 
potential customers 

Donation made for 
applications and 

Hunger relief 

Potential Corporate Benefits 


Attracting New; Customers 

Inspired perhaps by the success of the innovative American Express 
credit card campaign in the early 1980s that generated increased card us- 
age, new member applications, and more than $ 1 million for the Statue 
of Liberty restoration fund, financial institutions have been partnering 
with nonprofit organizations and foundations for more than 20 years to 
develop and promote affinity card programs. Financial institutions be- 
lieve they can give consumers a sense of purpose with their plastic and a 
reason to pick their cause-related option over the many other cards in 
their wallet. How this works and why this cause-related initiative con- 
tinues to be popular is described in the following summary: 

Example: Financial Institutions and Affinity Cards 

Most commonly, nonprofit organizations develop an exclusive 
arrangement with a financial institution that makes a dona- 
tion linked to one or more specific consumer actions, includ- 
ing applying for a card, using the card for a purchase (donation 
amounts sometimes increase with greater purchases), transfer- 
ring a balance, or receiving a cash advance. Annual percent- 
age rates most commonly range from 15 to 22 percent; many 
carry annual fees; and some reports suggest the average dona- 
tion for charges is about .05 percent, about a half a cent for 
every dollar. 5 

Consumers apparently like affinity cards, as they are often a vi- 
sual symbol and reminder of something they feel strongly about. 
By using the card they are able to generate contributions (at no 
apparent cost to them) to a charity or association they care 
about. It also gives them a frequent opportunity to share their 
passion with others, especially at cash registers and with fellow 
members of an organization (e.g., an alumni card used at a din- 
ner with a fraternity brother). For the nonprofit, of course, this 
word-of-mouth promotion is invaluable, as is the mass exposure 
that a bank's marketing power might offer. For the financial in- 
stitution, benefits can go beyond increased applications, card us- 
age, and word-of-mouth from passionate cardholders, as some 
charities even agree to share their mailing lists with the bank. 
Apparently this relationship is mutually rewarding as, according 


Cause-Related Marketing 

to the Nilson Report, affinity cards accounted for 29 percent of 
all credit cards in circulation in 2001. 6 

But experts caution that successful relationships (a win-win for 
the charity and the financial institution) require important cri- 
teria. Visa USA, for example, suggests that the nonprofit orga- 
nization will likely need to have a current member/donor base 
that could be anticipated to generate a desired 50,000 cardhold- 
ers. If 10 percent of the base responded, this would mean that 
the organization would actually need to have 500,000 potential 
names, or even as many as one million if only 5 percent are ex- 
pected to respond. 7 

Although many organizations are not willing to share financial 
numbers, a few have published impressive results: 

• Working Assets, a long distance, wireless, credit card, and 
broadcasting company in San Francisco, has generated $40 
million from its affinity credit card since 1985. With every 
purchase made using the Working Assets credit card, 10 
cents is donated to nonprofit groups working for peace, hu- 
man rights, equality, education, and the environment. Pro- 
motional messages encourage potential applicants to "Start 
changing the world a dime at a time." 8 

• The World Wildlife Federation in Washington, D.C., has 
earned almost $8 million from its affinity credit card since 
1995. 9 

• The American Lung Association's affinity card with 
Citibank has generated over $1 million to help fight lung 
disease. For every account activated, Citibank donates 
$30, as well as a percentage of every purchase made with 
the card.. Promotional materials note that if 100,000 
cardholders spent $5,000 a year on their card, it would 
amount to more than $3 million a year for the American 
Lung Association. 10 

• A mailing in 2003 urged Rotarians to apply for the pre- 
mium Platinum Plus MasterCard credit card to help in- 
crease public awareness and visibility of Rotary 
International and raise funds to benefit the Rotary Founda- 
tion. Since the launch of this program in 2000, more than 

Potential Corporate Benefits 


$ 1 million has been raised. Their 2003 mailing closed with 
the message that the next $1 million in affinity card pro- 
ceeds would be designated for the association's polio eradi- 
cation program (see Figure 4.1). 

Raising Funds for a Cause 

The Avon Breast Cancer Crusade is perhaps one of the most well- 
known and long-standing cause-related marketing campaigns of our 
time, and a prime example of a win-win for a company and the cause. 
Pringle and Thompson elaborate on the value of cause-related market- 
ing to the Avon brand, as well as to the breast cancer cause, in their 
book Brand Spirit. "A global brand such as Avon has built its market 
position by recruiting, training, and motivating a vast and evolving 
army of representatives. In the process it has created valuable relation- 
ships with millions of women. As such Avon has had the authority to 
embark on an ambitious cause-related marketing campaign focused on 
a highly personal issue, namely breast cancer. This campaign from a 
trusted brand has probably done more than any governmental organi- 
zation to demystify, educate, and help prevent this debilitating and of- 
ten fatal disease." 11 

Figure 4. 1 The Rotary Foundation receives a donation equivalent to 
one-half of 1 percent of every purchase charged to the card. 


Cause-Related Marketing 

Example: Avon Breast Cancer Crusade 12 

Avon's desired position, as well as their mission, is made clear in 
their slogan, "AVON — the company for women." Their associa- 
tion for more than a decade with the cause of women's breast 
cancer has certainly assisted in securing and affirming this posi- 
tion. Their corporate vision is "to be the company that best un- 
derstands and satisfies the product, service, and self-fulfillment 
needs of women globally. Our dedication to supporting women 
touches not only beauty — but health, fitness, self-empowerment, 
and financial independence." 13 

The Avon Breast Cancer Crusade was founded in the United 
Kingdom in 1992 and launched in the United States in 1993 with 
a mission to fund access to care and help find a cure for breast can- 
cer, and includes a focus on medically underserved women. The 
cause has resonated well with the company's market as well as 
with sales representatives. The Avon Foundation awards funds for 
medical research, screening and diagnosis, clinical care for cancer 
patients, support services for patients and their families, educa- 
tional seminars, and early detection programs. In addition, Avon 
supports programs for breast cancer and other vital women's 
health issues in more than 50 countries worldwide. Funds raised 
by all corporate and foundation initiatives in the United States 
are managed and disbursed by the Avon Foundation. 

The Avon Breast Cancer Crusade raises funds through many so- 
cial initiatives. They support cause promotions, including local 
fundraising programs, direct online donations, and a national se- 

Figure 4.2 Avon's Heart of the Crusade Pin is priced at $3.00, with 83 
percent of the purchase price being returned to the breast cancer cause. 
(Reprinted courtesy of Avon.) 

Potential Corporate Benefits 


ries of fundraising walks. Their philanthropic initiatives include 
providing grants to beneficiaries ranging from leading national 
cancer centers to community-based breast health organizations. 
Of special interest in this chapter is their cause-related initia- 
tive, the year-round sale of special "pink ribbon" products. 

Pink ribbon products, marketed by Avon Products, Inc., over the 
decade have included lipsticks, pens, mugs, candles, stuffed 
bears, cosmetic cases, umbrellas, and the Heart of the Crusade 
pin see Figure 4-2). Net proceeds (above cost of goods) donated 
to the breast cancer cause range from 50 to 83 percent of the 
purchase price. Most products are priced low, at $7.00 or under; 
each is gift-boxed and accompanied by an informational 
brochure, "Guide to Better Breast Health." 

Since 1993, 600,000 independent Avon sales representatives in 
the United States alone have generated over $55 million from 
sales of pink ribbon products. Total net funds raised worldwide 
exceed $300 million. 

Reaching Niche Markets 

A growing number of companies are discovering that cause-related 
marketing initiatives can be an effective way to reach and connect 
with specific demographic, geographic, or otherwise defined targeted 
markets (e.g., tobacco users; friends and families of cancer victims; 
school teachers; homemakers). The nonprofit foundation featured in 
the following example forged a partnership with an e-commerce leader 
reaching tens of millions of homes a day, as a way to reach niche audi- 
ences and generate grassroots interest in an important and potentially 
life-saving campaign. 

Example: QVC and the American Legacy Foundation, 

In February 2003, QVC and the American Legacy Foundation 
announced the availability of the Circle of Friends Sunburst Pin, 
a wearable icon representing a new movement in support of 
women struggling with tobacco addiction (see Figure 4-3). The 
American Legacy Foundation, created as a result of the 1998 


Cause-Related Marketing 

Figure 4.3 Sterling Circle of Friends™ Sunburst Pin. QVC price was $16 
plus shipping and handling, with $5 from each sale donated to American 
Legacy Foundation. (Reprinted courtesy of American Legacy Foundation.) 

Master Settlement Agreement between the tobacco industry 
and attorneys general in 46 U.S. states and five U.S. territories, 
reports that one in five women in America smoke and more 
than 178,000 die each year from a tobacco-related disease. 14 
QVC, Inc., partnered with the foundation's "Circle of Friends" 
initiative, providing a national audience that could learn more 
about Circle of Friends and the importance of supporting smokers 
who want to quit, as well as the Sunburst Pin product offering. 
QVC broadcasts live 24 hours a day, 364 days a year, and intro- 
duces 250 new products every week to viewers in an estimated 
84 million homes across the United States. Jewelry lines account 
for an average of 29 percent of QVC programming. 15 It seemed a 
natural fit that QVC's audience would respond well to a beauti- 
ful piece of jewelry with a symbolic meaning. 

The sterling silver pin was designed by a world-renowned jew- 
elry designer, with the Sunburst logo intended to be a symbol of 
hope and inspiration for women and families choosing a to- 
bacco-free future. The pin also reflects a movement of people 
joining together to help loved ones and friends in their attempts 
to quit smoking. Print advertisements in magazines featured 
celebrities and highlighted the message that "Quitting isn't easy, 

Potential Corporate Benefits 


but when friends and loved ones are there to help, smokers are 
50 percent more likely to succeed." 16 

The pin was offered exclusively through QVC for $16.00 plus 
shipping and handling. For every pin sold, $5 went to the Amer- 
ican Legacy Foundation to help fund programs for women dedi- 
cated to living smoke-free lives, including a toll-free helpline. 
Pins could be purchased online or by calling a toll-free number. 

Foundation president and CEO Dr. Cheryl Healton commented 
at the time the initiative was announced, "We are delighted to 
welcome QVC into our Circle of Friends and invite its national 
viewing audience of more than 84 million cable households to 
join in the cause." 17 

Increasing Product Sales 

Keep America Beautiful (KAB) is a national nonprofit public education 
organization with affiliate chapters across the nation, enhancing envi- 
ronments in more than 14,000 communities. 18 Their focus is on litter 
prevention, beautification, community improvement, and waste reduc- 
tion. In the following example, brand managers for LYSOL® share their 
cause-related marketing campaign that both benefited KAB and sup- 
ported marketing goals for increased awareness and purchase of multiple 
LYSOL® products. 

Example: LYSOL® and Keep America Beautiful 

For over 100 years, LYSOL® Brand has strived to set the gold stan- 
dard in disinfecting and cleaning, with the goal of helping protect 
families from illness-causing germs. As a category leader, we seek 
to align ourselves with partner organizations based on their having 
similar missions and values as ours. The Keep America Beautiful 
(KAB) Great American Cleanup encourages individuals across 
the country to take greater responsibility for improving their com- 
munity environments. For LYSOL® Brand — whose goal is to help 
maintain clean, vibrant, and productive homes, schools, hospitals, 
and other institutions — it was a natural fit to extend the family 
protection message to a broad, community-based activity. 


Cause-Related Marketing 

In the spring of 2003, LYSOL® developed a freestanding newspa- 
per insert with a circulation of 40 million to launch our involve- 
ment in the program. Approximately 10,000 grocery stores had 
LYSOL® and the Great American Cleanup shopping cart ads 
(see Figure 4-4)- Then, to support specific cleanups, LYSOL® 
contacted the leaders of all KAB affiliates in every state, offering 
them the opportunity to use our products as part of their volun- 
teers' Great American Cleanup activities. We donated nearly 
25,000 products with a total retail value of approximately 
$105,000 across all 50 states, and in many cases had LYSOL® 
representatives on-site to assist with the cleanups, conducted at 
day care centers, senior housing, public transportation shelters, 
park facilities, and schools. Six thousand T-shirts with the 
LYSOL® logo and Great American Cleanup logo were produced 
for local cleanup events, along with signage on banners and 
buckets as well. We leveraged public relations and media expo- 
sure at the national and local levels to make consumers aware of 
our involvement with the cleanup, and had significant signage, 
paraphernalia, and other items on-site and in grocery stores to 
demonstrate our support. We also provided information on the 
LYSOL® web site for the event and a hot link to the Keep Amer- 
ica Beautiful site for specific market level cleanup information. 

Five products were featured in the newspaper insert, offering a 
five cent donation to KAB for every coupon redeemed, up to 
$225,000, and in the summer of 2003, LYSOL® donated $225,000 
to KAB. 

Our involvement in KAB's Great American Cleanup generated 
significant recognition for the LYSOL® brand in communities 
across the country and showed our relevance in serving people's 
needs in disinfecting and cleaning. This relationship supports 
our brand leadership platform, builds brand equity, and demon- 
strates that we are highly involved with causes about which 
Americans care. 

From a product perspective, and based on the structure of our 
cross-product promotion, we generated sales of multiple products 
in the LYSOL® franchise to the same customer. This was impor- 
tant to us, as it helped raise consumer awareness of the range of 
products we offer. One of our goals was to promote and sell mul- 

Potential Corporate Benefits 


tiple products in the LYSOL® franchise to our target consumers. 
We were pleased with results that demonstrated cross-promo- 
tions do work and do lead to trials of additional products. 

LYSOL® is proud to once again sponsor the Keep America Beau- 
tiful Great American Cleanup for 2004- This year we began to 
plan programs with affiliate leaders much earlier, and have in- 
volved our trade partners. We have arranged with various retail- 
ers to do in-store promotions, radio spots, and other activities as 
a shared commitment to supporting this cause and to building 
their business. 19 

Building Valuable Partnerships that Support the Effort 

As noted earlier in the chapter, corporations have several options for 
partnerships for cause-related marketing initiatives. They may partner 
with a nonprofit organization or foundation that is not connected or 

Figure 4.4 LYSOL® grocery cart ad promoting donations tied to 
purchase of specific products. (Reprinted courtesy of LYSOL®.) 


Cause-Related Marketing 

Support Your School 

Target will donate a portion of your 
Target Guest Card purchases to 
the K-12 school of your choice.** 


Figure 4.5 Target's School Fund-Raising program raised $27 million 
for 110,000 schools in 2003 alone. (Courtesy of Target Corporation, 
Minneapolis, MN.) 

associated with the corporation, or they may designate their own 
foundation or nonprofit organization as the recipient of funds raised 
during the campaign effort. The following example illustrates an addi- 
tional option, in which a company brings another for-profit corpora- 
tion into the partnership, extending the visibility, reach, and appeal of 
the initiative. 

Example: Target's School Fundraising 

Since it was introduced in 1997, Target's "Take Charge of Educa- 
tion" initiative has contributed more than $100 million to sup- 
port educational programs all across the country. 

One effort within this initiative is a cause-related program 
they've named "School Fundraising," in which every time guests 
use their Target® Visa® or Target Guest Card® at a Target store or 
at, an amount equivalent to 1 percent of their pur- 
chases will be donated to the eligible K-12 school of the guest's 
choice (see Figure 4-5). In addition, a donation will be made of 
0.5 percent of Target® Visa® purchases made elsewhere. In 2003, 
this program raised $27 million for the more than 110,000 
schools enrolled in the program. 20 The recipient K-12 schools 
can use the dollars for anything they need, from books to play- 
ground equipment. 

Guests are invited to apply for a Target® Visa® and/or Target 
Guest Card® and then designate a school online or by calling an 

Potential Corporate Benefits 


800 number. Purchases are tracked and donations are then made 
to schools twice a year. The program is supported through adver- 
tising, including print ads. 

As might be expected, individual schools promote the program 
with their students' parents as well. In one school's e-mail mes- 
sage, the information included program results, showing the 
amount of donations made from the program to the school to 
date, and encouraged parents to click on a link to apply for the 
program or to call the 800 number to designate their school. 

Copromotions also support the program. In the fall of 2003, Tar- 
get partnered with Red Brick Learning, a provider of educational 
materials, and offered schools an opportunity to double their do- 
nations, as the company promised to match every Target School 
Fundraising dollar that schools apply to the purchase of Red 
Brick Learning educational materials. 

As of September 2003, more than eight million Target guests 
were enrolled in the program. 

Building Positive Brand Identity 

By their nature, cause-related marketing campaigns are most successful 
when the word is spread far and wide, and most corporations involved in 
these campaigns will devote marketing resources to help assure this. By 
association, then, the company is co-branded with the cause (e.g., Win- 
dermere with Habitat for Humanity, and Target with local public 
schools). The Comcast brand enjoyed association with Ronald McDon- 
ald House Charities and gained publicity for their initiative, described in 
the following example. 

Example: Comcast and Ronald McDonald House Charities 

Comcast Cable is reported to be the largest provider of cable 
services in the United States and is expanding its cable opera- 
tions to deliver digital services and provide faster Internet ser- 
vice. 21 Cause-related marketing initiatives have been included 
to support this expansion, with a seeming intention to create a 
buzz about their services. Their co-branding effort with Ronald 


Cause-Related Marketing 

McDonald House Charities, named by Worth magazine as one of 
"America's 100 Best Charities of 2002," apparently did not go 

In 1999, a cross-promotion between AT&T Broadband/Comcast 
and McDonald's in Southern California targeted the Hispanic 
market with a television spot and direct-mail piece containing 
the message: "Receive the very best of cable programming for 
the entire family and team up with AT&T Broadband/Comcast 
to help benefit Ronald McDonald House Charities of Southern 
California (RMHC)." (See Figure 4-6.) The offer was to sign up 
for cable for only $19.99 a month and AT&T Broadband/Com- 
cast would donate the $7 installation fee to RMHC; six weeks 
following installation, AT&T Broadband/Comcast promised to 
send the household coupons to redeem for four free McFlurry 
deserts or soft-serve cones at participating McDonald's locations 
in Southern California. Liz Castells-Heard, president/CEO of 
Castells & Asociados, the Los Angeles-based Hispanic market- 
ing and advertising agency that developed the cross-promotion, 
believes that the partners "did well by doing good," generating 
"short-term sales with minimal incremental cost." "We get ex- 
treme satisfaction by partnering our existing clients to support 
such worthy causes for the benefit of the community." 

Liz estimated that McDonald's received $1 million worth of cable 
TV and direct-mail exposure; that Ronald McDonald House Char- 
ities® received $85,000; and that AT&T Broadband/Comcast got 
a "cool freebie to entice subscribers, additional media through 
McDonald's ubiquitous store point-of-purchase displays and co- 
op radio, and, most importantly, benefited from McDonald's 
long-established high Hispanic brand equity and community en- 
trenchment." She also commented that the media engagement 
was very high. "Radio deejays raved about McDonald's yummy 
desserts and the benefits of cable television for the entire family. 
The charity check was presented at a high-visibility family event 
covered by local TV and radio. We made it on the news. We got 
on talk shows and got sound bites on how we helped Latino kids. 
The promotion exceeded expectations by 30 percent, and 
RMHC's proceeds tripled." 22 

Potential Corporate Benefits 




al mes 

Y $4.95' por inscaladon 

jSuscribase hoy mismo para tener acceso a la mejor programacion 
en espaftol, ayudar a su comunidad y recibir 4 postres gratis! 

►rdor today and you'll have »cc«« to the best SpaniJi linsuip programming, plus w*H give yuu 4 free dessert* and help your community. 

jLlame hoy misnio porque esta 

terminn el 4 do agosto del 20021 Preguntc por la oferta "G" 

""a-a- 1 1-877-515-8752 

Call now and uk for offer cod* "G" thlt offer ends August 4, 2002! 

4 postres GRATIS/ 1 

Al suscribirse recibira cuatro cuponos para postres 
gratis de McDonald's . Escoja entre helados en conos 
pcquenos y/o postres McFlurry" pequertos. Ademas 
con su suscripcion, AT&T Broadband hara una 
donation a la organizacion Ronald McDonald House 
Charities of Southern California, que tiene como 
mision promover la salud y el bienestar de los ninos y 
sus familias por medio de program as sociales, 

S^n wp and you l receive (our coupon* for free deweru from McDonalaV 
Choose from either tmall soil serve Cones and/or small McFlurry" desserts. 
When you sign up. AT4T Broadband will make a donation ro the 
McDonald House Charklei of Southern California. Tholr minion 
promote (lie lieahh and weil bung of Children and ihw families by providing 

um*, * 4 tUmy" ***** ■ Mt*. ft ■ mm*,, ^Mtm u. «, m {4, e* 

Figure 4.6 A partnership benefiting Ronald McDonald 

House Charities®. (Promotional materials shown are for 2002 program.) 

(Reprinted courtesy of Caste lis & Asociados.) 


Cause-Related Marketing 

In summer 2002, Castells & Asociados again partnered their 
AT&T Broadband/Comcast and McDonald's clients to support 
RMHC with a promotion that featured a festive, pifiata-themed 
television spot and direct-mail piece with the message: "Save Big 
and Help the Community." For every cable subscription, the $4-95 
installation fee went directly to RMHC. The new customer then 
received a coupon for a free Crispy Chicken Extra Value Meal. 

The promotion has been considered so successful that several 
Comcast markets, such as western Washington, emulated the 
cross-partnership in subsequent years with positive results in the 
general market. 


It appears there may be as many concerns with this initiative as there 
are potential benefits. Some are unique to CRM and others are com- 
mon challenges associated other social initiatives as well. Those most 
significant for CRM include the following, having the greatest implica- 
tions for increased staff time and funds and potential legal and market- 
ing risks. 

• Contractual agreements specifying contribution conditions need 
to be drawn up between the corporation and the charity, taking 
more time and attention than with other initiatives such as a 
cause promotion or volunteering in the community. 

• Legal restrictions and required disclosures need to be investigated 
and abided by, again consuming more staff time on and attention 
to campaign details and coordination with partners. 

• The corporation as well as the partners need to establish reliable 
tracking systems to ensure consumer commitments are fulfilled. 
Such systems can be very labor intensive (e.g., a campaign where 
schools receive funds associated with the return of cereal boxtops 
will involve recording the number of returns and ensuring the 
appropriate schools will be credited with the appropriate amount 
of funds). 

Keys to Success 


• Since per item donations are often small (e.g., 0.5 percent of pur- 
chases on a credit card), participation levels will need to be high 
in order for the effort to be worthwhile, for the corporation as well 
as for the charity. This often requires an investment in paid pro- 
motions, including advertising, point-of-purchase signage, and/or 
direct mail, in order to obtain a reach and frequency threshold 
with target audiences. 

• Consumers can be especially skeptical of campaigns like this, as it 
will be seen (and rightly so) as more than a philanthropic effort. 
This will be especially true for campaigns that do not provide easy 
access to information regarding what portion of the proceeds of the 
sale will go to the charity or how much money is expected to be 
raised from the effort. The perception among many consumers is 
that the amount is probably small and won't make a big difference 
and that the corporation is using its association with the charity 
for purely profit motives. If amounts are not disclosed, this skepti- 
cism can rise, a tough dilemma if in fact the per sale donation will 
seem very small and not reflect the total potential amount. 

• Though not common, some customers may have concerns about 
the charity the brand is being associated with and may not want 
to purchase the product as a result. This may happen, for example, 
when a charity has a mission or is associated with some value that 
is inconsistent with those of the consumer or if a recent scandal 
(e.g., management of funds of the charity or membership discrim- 
ination) has received significant publicity. 

• Promotional executions and media channels will need to be de- 
veloped with the cause partner, who will also have guidelines and 
priorities related to brand identity and graphic standards. The 
charity partner may, for example, have a target market they want 
to reach (first or most) that is not as attractive to the corporation 
or not a priority for marketing resources. 


Keys to success take into consideration the challenges and potential 
downsides of CRM. Many are illustrated in depth in the three cases pre- 


Cause-Related Marketing 

sented in this section. Perspectives are offered from managers involved 
in developing and executing these initiatives, along with their recom- 
mendations, which include the following: 

• Select a major cause that your company and your target audience 
has passion about. 

• Choose a charity partner that has a broad base of existing and po- 
tential relationships, as the amount per transaction generated by 
the campaign may be small and therefore high volumes will be 
key to a successful campaign. 

• Target a product offer that has the most chemistry with the cause, 
looking for the intersection between your customer base, your 
products, and people who care about the cause. 

• Research the idea with targeted customers, or consider a pilot in 
one market to gauge general appeal and refine marketing strategies. 

• Give the effort considerable visibility with potential buyers. Small 
mentions on product labels or small type added to existing ads 
may go unnoticed. 

• Keep the offer simple, to avoid consumer suspicion and significant 
paperwork. Consider the benefits of disclosing the actual or antic- 
ipated amount to be donated to the charity (e.g., the next $1 mil- 
lion raised will be designated to eradicating polio in the world). 

• Be willing to recognize errors and make changes. 

Northwest Airlines and Its AirCares® Charitable Support Program 

Prior to the early 1990s, Northwest's corporate giving strategy consisted 
primarily of the community relations department simply writing checks to 
the various causes it supported. Not surprisingly, perhaps, there was little 
awareness or visibility among the employees or passengers with regard to 
the company's role in the communities it served. In 1992, charitable activ- 
ities at the corporate level were organized under a new initiative called the 
Northwest AirCares® charitable support program, described by Northwest: 

Interestingly, this took place at a time when the airline — and the entire 
airline industry — faced serious financial problems, with the Gulf War, 
high fuel prices, and overcapacity among the airlines. Despite all this, 
we were committed to being a responsible corporate citizen and looked 
for ways to use our resources to support causes around the world. 

Keys to Success 


The program began as an in-flight fundraising project for nonprofit 
organizations, a cause promotion effort. Northwest has a captive audi- 
ence of more than 50 million people a year who were then exposed to 
the program and the mission of its charitable partners. Each quarter, 
Northwest profiled a different partner charity through its various on- 
board communications and asked passengers to contribute money or 
frequent flyer miles to the nonprofit organization. We featured the 
charity partner over each three-month period through in-flight videos 
and onboard flight attendant announcements, ads in USA Today, and 
featured articles in the Northwest WorldTravekr magazine. 

Over the years, we learned that some of the causes that were fea- 
tured did not resonate as well as others with passengers in terms of 
their giving. We also found that after dozens of partnerships and causes 
were featured over the years, it was difficult to find new charity part- 
ners that caught as much of the passengers' attention or generated em- 
ployee enthusiasm. What we noticed was that passengers were most 
moved by opportunities to help children, especially sick children. 

The program then evolved to where since the end of 2002, 
Northwest's AirCares emphasis has been exclusively on its 
KidCares® program (see Figure 4.7). The KidCares medical travel 
program provides travel for a child, accompanied by one parent or 
guardian, to obtain needed medical treatment, a critical element 
when a child's health depends on receiving treatment far from home. 
This travel is made possible by mileage donations from Northwest's 
generous WorldPerks® travel program members that are then 
matched by the airline (a cause-related marketing effort). 

Internal support for the program is provided by the marketing 

T nwa KidCares 

Figure 4.7 Northwest Airlines' medical travel program is made 
possible by customer donations of miles that are then matched by 
the airline. (Reprinted courtesy of Northwest Airlines.) 


Cause-Related Marketing 

department that is responsible for tracking donated miles and man- 
aging communications about the program to the millions of mem- 
bers enrolled in WorldPerks through member statements and 
Northwest's web site. Corporate communications dedicates one 
page from each edition of the Northwest WorldTraveler inflight mag- 
azine to communicate about the program. To date, KidCares has 
provided free travel for more than 600 children and an accompany- 
ing adult. 

Through the AirCares program, the company has been better able 
to communicate that it is a caring corporate citizen, concerned with 
various issues around the world. In fact, recently the company's Air- 
Cares program received an award from the International Leadership 
Institute in Minneapolis/St. Paul. The award, the 2004 Twin Cities In- 
ternational Corporate Citizen Award, is "given to corporations in the 
community who have made outstanding contributions to both the lo- 
cal and global communities and who have demonstrated a strong com- 
mitment to international understanding, cooperation and mutual 
respect." 23 The Institute said that it looks for organizations that don't 
brag about how much they do but are, instead, just out there doing 
what needs to be done for people. 

We have also been able to leverage our relationship with charity 
partners. For example, when we run a special fare promotion, we can 
ask the current partner charity to share this promotion with its mem- 
bership (staff and supporters). 

Employees are taking more pride in the program and becoming 
involved in supporting the charity partners. As an example, our 
technical operations department, one of Northwest's largest em- 
ployee groups, contributes an estimated $25,000 per year to AirCares 
partners by individual employee donations through fundraising. An 
extraordinary fundraising effort took place during the last quarter of 
2003 when during Northwest's United Way campaign, the Technical 
Operations employees conducted a garage sale, of sorts, selling extra 
tools and toolboxes both to Northwest employees and to the general 
public. Their goal was to raise $50,000 to be given to a designated 
AirCares charity organization; that goal was exceeded within the 
first three hours of the sale with the end result of the sale raising 
$150,000. The money was divided amongst three of Northwest's Air- 
Cares charity partners. Their efforts helped a lot of people in need 
and built team spirit for the employees. 

Keys to Success 


This program has provided several lessons learned and the fol- 
lowing recommendations for others: 

• We learned how important it is to target issues and develop 
initiatives that relate to the company's core business, what 
you know best. Northwest is in the business of air transporta- 
tion and it makes sense (to us and our customers) for the air- 
line to use its resources to help sick children or people in need 
of travel. Likewise, restaurants and grocery stores may want to 
tackle the hunger issue and women's retail stores may want to 
support [victims of] breast cancer or domestic violence and a 
real estate or mortgage company would do well to consider 
supporting the homeless or Habitat for Humanity. It's about 
finding a natural, easy match. 

• Don't be shy about trying to have the initiative be a win-win 
situation for both the corporation and the charity. There's 
nothing wrong with doing well by doing good. 

• Be willing to shift program emphasis if something isn't res- 
onating with your customer base. Follow their passion. 

American Express 

Following the terrorist attacks of September 11, 2001, American Express 
recognized the need for, and committed itself to being an active part of, a 
process of healing, renewal, and revitalization in lower Manhattan. The 
decision reflected the company's commitment to its home community in 
New York, and its recognition of the critical role that business could play 
in revitalizing that community. A corporate executive for American Ex- 
press shares how a variety of corporate social initiatives were used in this 
effort, with a special highlight on a familiar cause-related marketing effort. 

Nowhere has American Express' community support been more fo- 
cused or more prevalent than in New York City — the company's cor- 
porate home throughout our 154-year history. Most recently, 
American Express has been at the forefront of efforts to revitalize 
downtown New York in the aftermath of September 1 1 — from return- 
ing 4,000 displaced employees to our corporate headquarters (dam- 
aged after the 9/11 attacks) in lower Manhattan, to helping draw 
millions of visitors to downtown New York through our sponsorship 


Cause-Related Marketing 

and support of various events and initiatives. American Express has 
pledged to partner with corporate, community, and government lead- 
ers to help make lower Manhattan the place to be for arts, entertain- 
ment, shopping, dining, and business. 

The company initiated and supported a wide range of corporate 
social initiatives in downtown New York to fulfill this commitment. 
Immediately following September 11, we created the American Ex- 
press World Trade Center Disaster Relief Fund, which contributed $5 
million to help the community respond to the disaster and to assist 
those most affected by the tragedy. For downtown merchants, com- 
pany staff went door-to-door offering help to get merchant systems up 
and operating following 9/11 and ran advertising campaigns encour- 
aging patrons and visitors to come back downtown. In the spring of 
2002 — at a time when many people were still reluctant to come 
downtown — we became the founding sponsor of the Tribeca Film 
Festival, drawing thousands of people to lower Manhattan for a series 
of premiere movie events, a free rock and comedy concert in Battery 
Park, and a free family day. The Tribeca Film Festival attracted more 
than 150,000 people to lower Manhattan that spring, more than 
300,000 in 2003, and more than 400,000 people in 2004, our third 
year of support. We also were the title sponsor of the first-ever Down- 
town NYC River to River Festival in 2002, which featured more than 
500 mostly free performances and cultural events in downtown Man- 
hattan. River to River has successfully drawn one million patrons to 
lower Manhattan in each of the festival's first two years. 

Most recently, American Express launched the Campaign to Re- 
open the Statue of Liberty (see Figure 4-8). Recognizing the impor- 
tance of the statue as a world symbol of liberty and freedom and its 
place as one of the most significant attractions in bringing people to 
lower Manhattan, American Express pledged a minimum of $3 mil- 
lion to the Statue. The funds will help support critical safety im- 
provements to the statue, which has been closed to the public since 
September 11, 2001. The American Express contribution has two 
parts. First, the company donated one cent for every purchase made 
on an American Express Card — up to $2.5 million — from December 
1, 2003, through January 31, 2004- The company made a direct con- 
tribution from its philanthropic program of $500,000. 

These recent initiatives, as well as our history of involvement 
in social responsibility, have led us to adopt several guiding princi- 

Keys to Success 


Figure 4.8 Promotional material for American Express's campaign to 
help reopen Lady Liberty. (Reprinted courtesy of American Express.) 

pies to ensure we do the most good for our communities as well as 
our company: 

• We achieve greater success with corporate social responsibil- 
ity initiatives when our efforts are a natural and logical exten- 
sion of the business and brand of the company. For American 
Express, service has always been a hallmark of its brand. We 
also have been strong supporters of culture and the arts — as 
have our Cardmembers. The company's efforts in New York 
align well with this historic commitment to service, culture, 
and the arts. 

• We leverage our resources — in funding, marketing, advertising, 
planning, and so forth — with those of a wide range of civic, cul- 
tural, community, and business groups. The strength of public- 
private partnerships, the collective commitment of the 


Cause-Related Marketing 

community, and the combining of resources make it possible for 
these initiatives to achieve far more than would have been pos- 
sible through the efforts of any individual organization. 

• We involve many different parts of the company — from staff 
groups to core business units — to think creatively, act gener- 
ously, and work collectively on corporate social responsibility 

• We recognize the importance of long-term commitment. De- 
spite the significant progress in the past two years, much work 
in rebuilding and revitalizing lower Manhattan remains. That 
is why we have supported many of these projects beyond just 
the first year — when emotions and support were high — as an 
acknowledgment of the considerable work that lies ahead 
and, with it, the need for sustained support throughout the 

Athena™ Water and Women's Cancers 

Paul Newman began selling food products under the label "Newman's 
Own" in 1982 with a $40,000 investment, pledging all after-tax profits 
to charities. Food industry experts predicted that the operation would 
lose $1 million in the first year. After the 12th month of business, New- 
man ended up giving close to $1 million to educational and charitable 
organizations. Since 1982, he has contributed over $150 million to 
thousands of charities. He attributes this success in part to providing 
consumers opportunities for "eating good food and doing good at the 
same time." 24 

The following more recent case may someday further demonstrate 
the power of a cause to enhance a product, even when it has few if any 
other points of differentiation. Athena Water's story is shared by Trish 
May, the company's founder and CEO, a former marketing manager from 
Microsoft who is a breast cancer survivor: 

The $3.5 billion-a-year bottled water market is extremely crowded 
and includes giants like Coca-Cola's Dasani and Pepsi's Aquafina. 
And yet, in the summer of 2003, I decided to enter the fray, deter- 
mined to capture a share of the bottled market in the Northwest and 
at the same time raise money for women's cancer research. 

I wanted to create a product where people could make a differ- 

Keys to Success 


ence every single day, one that didn't require you to run a race or at- 
tend a fundraising lunch. I considered everything from nuts to fruits 
to tofu and more, and when I landed on the idea of bottled water, I 
knew it was right. It was something everyone needs. It's associated 
with health and is a frequent purchase. The name Athena Water 
also seemed right as the Greek goddess Athena was known as the 
goddess of war, wisdom, and healing, and our initiative is about 
fighting the battle for a cure in an intelligent way. 

We first introduced the water in July 2003 as a product of 
Athena Partners™, a nonprofit organization with a mission to 
raise funds for women's cancer research and education, which ex- 
emplifies a new type of not-for-profit, considered a social enter- 
prise as it sells a product or service to support its cause rather than 
depend on donations. I funded the investment and pledged to do- 
nate 100 percent of net profits from bottled water sales to cancer 
research and education (see Figure 4-9). Pricing is in line with 
most other bottled waters with a suggested retail price of $3.29 for 
a six-pack of 500 milliliter bottles and $1.29 for single one-liter 



0 ioo% 

/\ of Profits 
to Find a Cure 

Visit for more information about how Athena Parma's is helping find the cure tor Women's cancers. 

Figure 4.9 Athena Water's donation of all profits to breast cancer 
research provides it with a point of difference in a crowded category. 
(© 2003, Athena Partners.) (Reprinted courtesy of Athena Partners.) 


Cause-Related Marketing 

bottles. I estimated at the time that if we could eventually capture 
5 percent of the bottled market in the Northwest, we would be 
able to donate $1 million a year. 

By November of 2003, only four months later, Athena had 
gained a distribution into 75 percent of the grocery accounts in west- 
ern Washington, a rapid entry especially for a new product from a 
new company. We were also picked up by food service outlets 
(Tully's Coffee), and a local health care organization started giving 
patients a bottle of Athena with every mammogram and when un- 
dergoing chemotherapy. Most recently, a popular box lunch caterer 
signed up and now includes Athena water in 5,000 to 6,000 boxed 
lunches it delivers each week to area businesses. Early in 2004, we 
anticipate donating at least $10,000 in profits from 2003, our first 
year. Funds will be split among cancer research organizations based 
in the Northwest. 

Three factors give me a great sense of optimism about what lies 
ahead and the potential for this product to make a real difference: 

1. The market for bottled water is strong and growing. Even 
though the market is crowded, it is estimated to be growing at 
30 percent a year and is a product that appeals to the target 
market, women. 

2. There is strong appeal for the woman's cancer cause. I believe 
it is the largest and most successful cause for which funds are 
raised each year. It resonates deeply with people as it touches 
everyone directly or indirectly and is a topic about which 
women bond and which they are comfortable discussing. It is 
also an area that other vendors want to support or feel a so- 
cial responsibility to report. 

3. Cause-related marketing has proven it can be successful. 
There are numerous examples of successful cause marketing 
products such as Yoplait yogurt and the U.S. Postal Service 
breast cancer stamp. The stamp has raised millions by adding 
a few cents to a commodity product and demonstrates the 
power of the cause to enhance a product, even when it basi- 
cally has no other point of differentiation. The cause, to- 
gether with the 100 percent of profits donation, gives the 
water a unique point of differentiation in a crowded, undiffer- 
entiated category. 

Developing a Cause-Related Marketing Campaign Plan 111 


Although most companies have the potential for developing and imple- 
menting a CRM initiative, those most likely to experience success are 
those with products that enjoy a large market or mass market appeal, 
have well-established and wide distribution channels, and would benefit 
from a product differentiation that offers consumers an opportunity to 
contribute to a favorite charity. It should be considered when increased 
product sales, visibility, or co-branding with a popular cause would sup- 
port corporate marketing objectives and goals for a product or products. 

It may also be most successful in situations where a company has an 
existing, ideally long-term association with a cause or charity and then 
adds this initiative to the lineup, in an integrated fashion. For example, 
consider a scenario where a life vest manufacturer had been partnering 
for years with a local children's hospital on a variety of corporate social 
initiatives related to drowning prevention among children. Efforts in- 
cluded participation in a cause promotion to increase awareness and 
concern about unintentional drownings among children by sponsoring 
paid public service announcements on television and promoting a chil- 
dren's health fair where drowning prevention information was distrib- 
uted. Imagine, too, that they were involved in a social marketing 
initiative with the hospital that encouraged parents to put life vests on 
children at beaches, and a philanthropic effort that included donating 
loaner life vests at community beaches and swimming pools. A cause- 
related marketing initiative might best be added at this point, where a 
donation to the children's hospital is promised with every toddler life 
vest sold. Because at this point the consumer associates the life vest man- 
ufacturer with the drowning prevention campaign and the children's 
hospital, the new effort may be perceived as an authentic, natural exten- 
sion of the apparent commitment to children and injury prevention. 


Steps in developing a CRM effort mirror those of traditional marketing 
plans, beginning with a situation assessment; setting objectives and goals; 
selecting target audiences; determining the marketing mix; and developing 


Cause-Related Marketing 

budget, implementation, and evaluation plans. Although this sequential 
process is not always practical or common, it is recommended by those 
looking back on both successful and disappointing efforts. 

In the situation assessment phase, many suggest to begin by identify- 
ing the company's marketing needs. Does the company want to enter a 
new market with existing products? Is there a new product launch that 
this effort might help fuel? Or is the market becoming crowded with par- 
ity products, offered at similar prices in similar locations, with the com- 
pany in need of a new strategy for product differentiation? 

With this focus, the assessment then moves to identifying a social is- 
sue to support. What issues is the corporation already supporting? Would a 
CRM effort strengthen the company's association and contribution to 
this cause? What are the major social concerns of target markets? Of 
these, which one is most closely aligned with the company's core values 
and has the strongest potential for connections with products that would 
support marketing objectives? At this point, potential partners are ex- 
plored. As this will be a co-branded effort, what charity or foundation 
would be the right match for the company and product's positioning? 
How large is their membership or donor base and what is their reputa- 
tion in the community? 

Once a social cause and charity have been selected, a marketing plan 
is developed to include marketing objectives (e.g., increase in new appli- 
cations) and quantifiable goals (e.g., desired fundraising levels). Working 
with the charity, target audiences are identified and a marketing strategy 
is developed that will include products the campaign will be linked with, 
purchase incentives, distribution channels, and promotional strategies. 
At this stage, legal agreements and contracts will also most likely need to 
be developed, as will promotional budgets and implementation plans. 
Tracking systems will need to be established, with clearly outlined roles 
and responsibilities for tracking and reporting. 


Cause-related marketing campaigns are most distinct from other corpo- 
rate social initiatives by the link of contribution levels to corporate prod- 
uct sales; the need for more formal agreements and systems for 
measurement and tracking with the charity; and the likelihood that the 
program will be funded and managed by the marketing department, often 



the recipient of the most corporate benefits. Contribution agreements 
with the charity and the consumer vary from ones that announce a speci- 
fied dollar amount for each product sold to ones that promise a portion of 
after-tax profits. The offer may be for only one specific product or it might 
apply to a line of products. It may be good for only a brief promotional 
time period, or it may be open-ended, as with affinity credit cards. 

By design, most corporate benefits from a cause-related marketing 
campaign are marketing-related and include the potential to attract new 
customers, reach niche markets, increase product sales, and build posi- 
tive brand identity. In addition, this initiative may also be one of the 
best strategies for raising significant funds for a cause. Potential concerns 
and challenges should also be anticipated and addressed, including in- 
creased needs (relative to other social initiatives) for promotional fund- 
ing, staff time for planning and coordination of the campaign with 
charity partners, and attention to potential legal and marketing risks in 
comparison to other types of initiatives. 

Experts recommend that managers select a major cause their com- 
pany and target audience has passion for, preferably one the company is 
already supporting. The ideal scenario is one where the charity partner 
has a large potential following, the product has good chemistry with the 
cause, and the incentive (offer) is straightforward and easy to under- 
stand. Development of a formal marketing plan is encouraged, one that 
includes considerable promotional effort and resources, recognizing that 
success will most likely depend on high participation levels, especially 
when contributions per transaction are small. 



Corporate Social Marketing: 
Supporting Behavior 
Change Campaigns 

Creating public-private partnerships , such as Crest Healthy Smiles 2010, 
can help affect change in the oral health of our country. These collective 
efforts can help educate both the public and health professionals, as well 
as provide the health care services and oral care tools needed to help end 
the current disparity in our nation's oral health. 

— Former U.S. Surgeon General Dr. David Satcher 1 

Corporate social marketing is a means whereby a corporation sup- 
ports the development and/or implementation of a behavior 
change campaign intended to improve public health, safety, the 
environment, or community well-being. Behavior change is always the fo- 
cus and the intended outcome. Successful campaigns utilize a strategic 
marketing planning approach: conducting a situation analysis, selecting 
target audiences, setting behavior objectives, identifying barriers and 
benefits to behavior change, and then developing a marketing mix strat- 
egy that helps overcome perceived barriers and maximize potential bene- 
fits. It relies on the same principles and techniques used in developing 
and implementing marketing strategies for corporate goods and services. 


Typical Corporate Social Marketing Campaigns 115 

It is most easily distinguished from other corporate social initiatives 
by this behavior change focus. Although campaign efforts may include 
awareness building and educational components or efforts to alter cur- 
rent beliefs and attitudes, the campaign is designed primarily to support 
and influence a particular public behavior (e.g., keeping a litterbag in 
the car) or action (e.g., voting). This initiative is probably most similar 
to cause promotion initiatives where, as described in Chapter 3, the cor- 
poration is providing funds, in-kind contributions, or other corporate re- 
sources to increase awareness about a cause or to support fundraising or 
volunteer efforts for a cause. When, however, campaign goals, objectives, 
messages, and related activities are "selling" a particular desired behav- 
ior, we categorize it as a corporate social marketing initiative and recom- 
mend specific program planning and implementation principles. 

Philip Kotler and Gerald Zaltman launched social marketing as a 
discipline more than 25 years ago in a pioneering article in the Journal of 
Marketing. 1 It is more recently described by Kotler, Roberto, and Lee as 
"the use of marketing principles and techniques to influence a target au- 
dience to voluntarily accept, reject, modify, or abandon a behavior for 
the benefit of individuals, groups, or society as a whole." 3 Over the past 
three decades, interest has spread from applications for improving public 
health (e.g., HIV/AIDS prevention) to increasing public safety (e.g., 
wearing seat belts), and more recently to protecting the environment 
(e.g., water conservation) and engendering community involvement 
(e.g., organ donation). 

Most commonly, social marketing campaigns are developed and im- 
plemented by professionals working in federal, state, and local public 
sector agencies, such as utilities, departments of health, transportation, 
and ecology, and in nonprofit organizations. Of interest in this chapter is 
the application for professionals working in for-profit corporations or 
their foundations. 


Corporate social marketing campaigns most commonly focus on promot- 
ing behaviors that address specific issues such as the following: 

• Health issues including tobacco use prevention, secondhand smoke, 
breast cancer, prostate cancer, physical activity, fetal alcohol 


Corporate Social Marketing 

syndrome, teen pregnancy, skin cancer, eating disorders, diabetes, 
heart disease, HIV/AIDS, and oral health. 

• Injury prevention issues including traffic safety, safe gun stor- 
age, drowning prevention, suicide prevention, and emergency 

• Environmental issues including water conservation, electrical con- 
servation, use of pesticides, air pollution, wildlife habitats, and lit- 
ter prevention. 

• Community involvement issues such as volunteering, voting, animal 
rights, organ donation, crime prevention, and blood donation. 

Selection of issues is most often influenced by a natural connection 
to a corporation's core business (e.g., Crest and children's oral heath). A 
decision to support a behavior change campaign may then be sparked by 
some growing, perhaps even alarming trend (e.g., increases in child obe- 
sity rates). This interest may be initiated by an internal group or staff 
member, such as a product manager who monitors specific consumer 
groups and their issues. Or the corporation may be targeted and ap- 
proached by a public sector or nonprofit organization to partner in an ef- 
fort (e.g., a medical center approaches a retail store regarding discounts 
on lock boxes for safe gun storage). 

As outlined in Table 5.1, a wide range of industries participate in so- 
cial marketing efforts. Major campaign elements include forming part- 
nerships, determining a behavior objective, selecting target audiences, 
and developing and implementing campaign strategies. More detailed 
steps recommended for developing a social marketing plan are outlined 
at the end of this chapter. 

Although campaigns may be developed and implemented solely by 
the corporation, it is more common that partnerships will be formed with 
public sector agencies and/or nonprofits who provide technical expertise 
regarding the social issue (e.g., heart disease); extend community out- 
reach capabilities (e.g., access to Boys 6k Girls Clubs); and add credibility, 
even luster, to the campaign effort and the brand (e.g., American Heart 
Association partnering with Subway). In typical scenarios, the corpora- 
tion provides several types of support: time and expertise of marketing 
personnel; money; access to distribution channels; employee volunteers; 
and in-kind contributions (e.g., printing of an immunization schedule). 
Funding may come from several sources within the organization, although 

Table 5.1 Examples of Corporate Social Marketing Initiatives 


Desired Behavior 

Target Audiences 

Sample Activities 

Major Partners 


Practice healthy heart 

Adults looking for 
healthy food options 


American Heart 


Put infants on their 
back to sleep to help 
prevent SIDS 

Parents and caretakers 

"Back to Sleep" logo 
on newborn diapers 

SIDS Foundation 
Health Canada 

Best Buy 

Recycle used electronics 
at our store 

Computer and software 

Web site 

Recycling events 

Local governmental 

Mustang Life Vests 

Put a life vest on toddlers 
at beaches, on docks 
and on boats 

Families with toddlers 

Outdoor ads 
Discount coupons 
Loaner programs 

Children's hospitals 
Emergency medical 

Local government 


Premera Blue Cross 

Don't pressure your 
doctor to prescribe 

Adults and parents 

News articles 

Statewide Coalition on 
Judicious Use of 


Table 5.1 (Continued) 


Desired Behavior 

Target Audiences 

Sample Activities 

Major Partners 


Eat 5 fruits and 
vegetables a day 

Parents, teachers, 

Web site 



National Institute of 

Produce for Better 

Health Foundation 

7 -Eleven 

Dispose of litter 

People who eat fast 

16- to 24-year-olds 
People who drive 50- 
plus miles a day 

Point of purchase 
Special events 

Texas Department of 

Keep Texas Beautiful 


Ensure good oral 
health for 

Primarily children in 
grades K-3 

Dental care 
Oral health tools 

American Dental 

Boys 6k Girls Clubs 



Take important steps to 
prevent fire around 
the outside of your 

Homeowners in high- 
risk wildfire areas 

Printed materials with 
"10 Tips to Wildfire 


Speaker events 

Fire marshals 
Local Safeco agents 

The Home Depot 

Practice these 100 ways 
to save water 

Local residential 

Discount coupons 
Guideline cards 


Water conservation 

Media & 


Potential Corporate Benefits 


marketing is often an enthusiastic contributor, as many of the benefits 
support marketing objectives and goals. 

As suggested in Table 5.1, typical campaigns focus on behaviors that 
can be expressed as a single act (e.g., get a flu shot) or simple doable acts 
(e.g., eat five fruits and vegetables a day) — behaviors that the target au- 
dience will know if they have done and ones that campaign managers 
can measure. Market segmentation is common, with a desired focus on 
target audiences who will benefit most from the behavior change, who 
are most open to the idea of change, and who can be reached efficiently 
with available media channels. Typical activities include traditional pro- 
motional efforts using a variety of media channels, including broadcast, 
print, outdoor, promotional items, and special events. 


As illustrated in the following brief case examples, many of the potential 
benefits for the corporation are connected to marketing goals and objec- 
tives: supporting brand positioning, creating brand preference, building 
traffic, and increasing sales. Potential benefits beyond marketing include 
improving profitability and making a real social impact. 

Supporting Brand Positioning 

Kotler and Armstrong describe a brand's position as "the complex set of 
perceptions, impressions, and feelings that consumers have for the prod- 
uct compared with competing products." 4 Social marketing is one strategy 
to achieve a desired brand position. 5 The following case illustrates how a 
social marketing partnership between a corporation and a publicly funded 
program provided strong benefits for a brand in the highly competitive 
fast-food industry and helped to positively influence eating behaviors. 

Example: Subway and Heart Health 

Subway has a corporate philosophy to offer healthy, convenient 
fast food and currently features seven sub sandwiches with six 
grams of fat or less. 

On a local level, this core competency made them a natural 
partner for North Carolina's Heart Disease and Stroke Prevention 


Corporate Social Marketing 

Task Force and the North Carolina Cardiovascular Health Pro- 
gram funded by the Centers for Disease Control and Prevention. 

Subway sponsored and therefore was associated with messages 
from these health organizations promoting healthy eating and be- 
ing physically active. In the year 2000 these cosponsored messages 
reached over seven million listeners in North Carolina with 
taglines on Subway's radio and television commercials. Brochures 
at cashier stands were made available in more than 470 stores 
throughout the state. Coupons for Subway's healthy "Seven Un- 
der Six" meals were featured in newspaper inserts (see Figure 5.1). 

Reports indicate that demand for their low-fat offerings in- 
creased and that one state legislator asked how he could get a 
Subway restaurant in his district. The partnership has garnered 
attention from CDC and the American Heart Association. 

On a national scale, in 2003 Subway announced its national 
sponsorship of the American Heart Association's "America 
Heart Walk," an annual 5K walk in more than 750 cities across 
America. Promotional materials including an announcement of 
the sponsorship on napkins and in a "Nutritional 6k Dietary 
Guide" on counters in Subway restaurants, outlining the benefits 
of exercise, tips for getting started, and how to find time for an 
exercise routine. 

Figure 5.1 Subway's cosponsored messages provide strong 
support for a desired brand positioning. (Reprinted courtesy of 
MarketSmart Advertising.) 

Potential Corporate Benefits 


Creating Brand Preference 

Brand preference makes it more likely that a particular product will be se- 
lected from a lineup of similar products. Social marketing can create rich 
associations for the brand by connecting it with a cause. According to Busi- 
ness for Social Responsibility, "A 1997 study by Walker Research found 
that when price and quality are equal, 75 percent of consumers would 
switch brands or retailers if a company is associated with a good cause." 6 

In the following example, note the potential for rich associations for 
the Pampers brand of disposable diapers as a result of supporting a social 
marketing campaign to influence parents and caregivers to place infants 
on their backs to sleep, instead of their sides or stomachs. 

Example: Pampers and Sudden Infant Death Syndrome (SIDS) 7 

Sudden Infant Death Syndrome (SIDS) is the leading cause of 
death among infants from birth to 12 months in North Amer- 
ica. Importantly, according to the National Institute of Child 
Health and Human Development (NICHD), the SIDS rate in 
the United States has declined by more than 50 percent since 
the NICHD "Back to Sleep" campaign began in 1994. Pam- 
pers joined the nationwide Back to Sleep campaign in the 
United States in 1999 at the encouragement of a forum com- 
prised of leading world child care experts (Pampers Parenting 
Institute), recognizing Pampers as the leading diaper used in 
hospitals. 8 

Pampers printed the Back to Sleep logo (featuring a baby sleep- 
ing on its back — see Figure 5.2) across the diaper-fastening strips 
of its diapers for newborns, delivering life-saving information 
straight to parents and caregivers. In addition to imprinting the 
Back to Sleep logo on diapers in three different languages (Eng- 
lish, French, and Spanish), Pampers included Back to Sleep in- 
formation in childbirth education packets, booklets distributed 
through pediatricians' offices, direct mail pieces to households 
with newborns, and an aggressive media outreach program tar- 
geting minority communities. In 1999, it was estimated that the 
campaign would reach 1 .5 million mothers of newborns and that 
Back to Sleep information in education packets would reach 2.5 
million mothers each year. 9 


Corporate Social Marketing 

And in Canada the company supported the creation and distrib- 
ution of promotional door hangers, distributed educational pam- 
phlets to new mothers through the majority of Canadian 
hospitals, and promoted SIDS awareness through its own adver- 
tising campaigns. 10 

Building Traffic 

As noted early in this article, social marketing campaigns influence be- 
haviors, and corporations can leverage these behaviors to increase sales 
of their products, especially through increased traffic. RadioShack, for 
example, developed a program that provided a variety of materials and 
tools for families to help keep children safer from abduction and abuse. 
One campaign element included offering 800,000 free "Child ID" kits 
at all RadioShack stores nationwide. 11 Best Buy also demonstrates this 
traffic-building opportunity. 

Figure 5.2 A "just-in-time" message that appeared on Pampers 
newborn diapers. (Reprinted courtesy of National Institute of Child 
Health and Human Development. ) 

Potential Corporate Benefits 


Figure 5.3 Used electronic equipment is recycled at Best Buy stores, 
providing opportunities for upgrades and increased sales. (Reprinted 
courtesy of Best Buy.) 

Example: Best Buy and Recycling Electronic Equipment 12 

In summer 2001, Best Buy was among the first electronics re- 
tailers to offer consumers recycling opportunities across the 
country, leveraging the fact that an estimated 50 million com- 
puters and televisions are thrown away annually, increasing 
concerns about landfills and hazardous waste management as 
well as hazardous materials. 

The program encourages consumers to drop off old and unwanted 
computers, monitors, televisions, VCRs, and other electronic 
items at select Best Buy stores during specified weekends (see Fig- 
ure 5.3). A handling fee is charged for CRT-containing items. 
Best Buy plans to form partnerships with local government agen- 
cies, manufacturers, and waste management companies. 

This national rollout was launched after a two-day pilot event in 
autumn 2000 at one of Best Buy's Minnesota stores resulted in a 
two-day collection of 22 tons of equipment, enough to fill two 
semitruck trailers. 13 Partners included local government agencies 
as well. The program was announced at an annual luncheon of 


Corporate Social Marketing 

the Electronics Product Recovery and Recycling (EPR2) Con- 
ference, attended by government agencies, academia, nonprofit 
organizations, electronics manufacturers, and recycling compa- 
nies. 14 Best Buy incorporated messages regarding the recycling 
events in radio and print ads and on their web site. 

For Best Buy, this strategy captures opportunities for computer 
upgrades, builds traffic in their stores with their target audiences, 
and builds their brand through positive value associations. 

Increasing Sales 

Perhaps the most attractive of benefit of social marketing initiatives is 
the potential for increased product sales. This is often possible when 
there are natural ties with the products and services of corporations that 
can support desired behaviors (e.g., booster seats, blood pressure moni- 
toring equipment, water conserving appliances, baby safety gates, smoke 
alarms, mulch mowers, compost bins, exercise equipment, water bottles, 
and bike helmets). The following case makes this point well. 

Example: Mustang Survival Life Vest 
and Drowning Prevention 15 

Mustang Survival, a life vest manufacturer interested in in- 
creased share in the child life vest market, enthusiastically ac- 
cepted an invitation in the early 1990s to partner with 
Washington state's Children's Hospital and Regional Medical 
Center's drowning prevention campaign. After all, the campaign 
focused on influencing parents to put life vests on their children 
when on beaches, docks, or boats, in open water, and around 
swimming pools. 

Mustang Survival provided funds for advertisements, featuring 
the Mustang logo, and for educational materials and displays. 
It donated life vests for loan programs on public beaches; 
provided discount coupons for its life vest that were distrib- 
uted by coalition partners (see Figure 5.4); and created retail 
displays featuring drowning prevention messages along with 
its life vests. 

Potential Corporate Benefits 


SAVE $5.00 on a Mustang 
Children's Life Vest! 

IWRBWW Iwi i wp 

Figure 5.4 Coupons distributed by drowning prevention coalition 
partners assisted Mustang in capturing more of the child life vest market. 
(Reprinted courtesy of Seattle Children's Hospital and Regional 
Medical Center.) 

After the first year of this campaign, Mustang reported an in- 
crease over the prior season of more than 25 percent in this new 
market; children's life vest ownership and life vest usage in- 
creased significantly among parents aware of the campaign. 

Improving Profitability Through Reducing Costs 

Social marketing campaigns can even contribute to corporate profitabil- 
ity by influencing behaviors that can reduce operating costs or expenses. 
Prime examples are in the utility sectors (e.g., influencing homeowners 
to reduce peak energy loads) as well as health care and insurance indus- 
tries, where health promotion and injury prevention can save costs of de- 
livering health care. 

Example: Premera Blue Cross and 
Judicious Use of Antibiotics 16 

In general, health experts agree that up to 50 percent of all an- 
tibiotic treatment may be unnecessary. This issue directly af- 
fects public health, overall health care costs, and, to a lesser 
extent, the profitability of organizations such as Premera Blue 
Cross, a regional health plan in Washington, Oregon, and 


Corporate Social Marketing 

Alaska. In an effort to help reduce the local threat of bacteria 
growing increasingly resistant to antibiotics, Premera joined a 
coalition that included the Washington State Medical Associa- 
tion and the Washington State Department of Health to pro- 
mote the judicious use of antibiotics. 

Campaign activities include the following: 

• Targeting physicians through printed materials and educa- 
tional symposiums, and reporting on individual physician 
prescribing patterns. 

• Targeting members through newsletters, posters, and 
brochures with clear behavior messages: Don't pressure 
your doctor to prescribe antibiotics; finish the full course; 
and never save the medication. (See Figure 5.5.) 

• Targeting the community through news articles in major 

Wash your hands often 

with soap and warm water 
to prevent the spread of colds 

Antibacterial soaps are 
not nBeded 

Premera I 



Figure 5.5 Campaign poster to encourage judicious use of 
antibiotics is also expected to result in savings for Premera Blue 
Cross. (Reprinted courtesy of Washington State Department of 
Health and Premera Blue Cross.) 

Potential Corporate Benefits 


In 2001, Premera estimated that a potential savings on overpre- 
scribing for upper respiratory infections alone could reduce 
health care cost by $8 million per year for this health plan and 
its members alone (1.1 million members). 

Attracting Enthusiastic and Credible Partners 

The social marketing initiative, perhaps more than others, is likely to be 
welcomed and supported by public sector agencies, nonprofit organiza- 
tions, foundations, and special interest groups often charged with goals 
and performance measures for influencing public behaviors (e.g., reduc- 
ing incidence of obesity in children). These organizations and agencies 
in return offer support in the form of endorsements, expertise, networks, 
and shared distribution channels, as illustrated in the following example 
for Dole. 

Example: Dole and 5 A Day 

The "5 A Day" program was launched by the National Cancer 
Institute in 1991 with a mission to promote the consumption of 
at least five servings of vegetables and fruit per day as a way to 
reduce the risk of chronic diseases. 17 

Unlike initiatives of many government health promotions, 
the 5 A Day program relies heavily on private industry to 
achieve its goal of increasing vegetable and fruit consumption. 
Partners in several industries have stepped forward, including 
national grocery store chains, produce growers, distributors, 
and trade organizations. 

The Dole Food Company was a welcomed partner and one of 
the original program sponsors, contributing to the program since 
its beginning. Programs Dole has developed to support this effort 
to encourage children and their families to eat five to nine serv- 
ings of fruits and vegetables a day include the following: 18 

• 5 A Day Adventures CD-ROM. 

• "Jammin' 5 A Day" music. 

• "Fun with Fruits & Vegetables" kids' cookbook. 

• "How'd You Do Your 5 Today?" Chart. 


Corporate Social Marketing 

• "5 A Day Live!" musical performance kit. 

• Dole 5 A Day web site (see Figure 5.6). 

• "5 A Day Friends" e-mail. 

• 5 A Day Student Ambassadors. 

• 5 A Day Supermarket Tours. 

Dole's contribution to the program is acknowledged by educa- 
tors, children, parents, and U.S. government health and educa- 
tion agencies for following important principles including 
maintaining integrity of nutritional messages, creating noncom- 
mercial materials and programs, maintaining a strong partner- 
ship with the National Cancer Institute, and supporting the 
national 5 A Day for Better Health campaign. 19 

Between 1991 and 2003, the Dole 5 A Day program provided 
free nutrition education materials to more than 38,000 schools 
and 115,000 elementary teachers in the United States. 20 

Figure 5.6 A logo that provides a strong co-branding message. 
(Courtesy of Dole Food Company, Inc.) 

Potential Corporate Benefits 


Having a Real Impact on Social Change 

Perhaps more than any other social initiative, social marketing has the 
potential for impacting positive behaviors of large populations, and thus 
having an impact on social change. Support from organizations like 7- 
Eleven can make or break efforts to reduce litter. 

Example: 7 -Eleven and Litter Prevention 

"Don't Mess With Texas" is a tough-talking litter prevention 
campaign sponsored by the Texas Department of Transportation. 
This social marketing campaign launched in 1986 seeks to per- 
suade Texans to keep their trash in the car and off the roads — 
and apparently it is working. Between 1995 and 2001, litter 
thrown on Texas highways decreased by more than 50 percent 
and cigarette butt litter decreased by 70 percent. 21 

7-Eleven, Inc.'s decision to support the campaign made sense on 
a couple of fronts. First, research indicates similarities in the de- 
mographic profiles between convenience store customers and 
people who litter. Those littering are more likely than most to 
eat fast food at least three times a week, be under age 24, and 
drive more than 50 miles a day. Second, 7-Eleven is said to have 
coined the phrase "dashboard diner®," as it is known for its 
portable food and drink offerings and, as a good corporate citi- 
zen, wants to encourage proper disposal of its containers. Corpo- 
rate leaders viewed the partnership as a way for 7-Eleven to have 
a major impact, because of the large number of state residents 
coming to their stores each day. 22 

Campaign activities supported by 7-Eleven included in 2001 
posting a 6-by-12-inch decal on sales counters, encouraging cus- 
tomers to "Dine on the Dash but Stash Your Trash" (see Figure 
5.7). 7-Eleven unveiled what is believed to be the worlds' largest 
trash bag at a "Don't Mess With Texas" local rally and cleanup 
event that offered customers a chance to practice tossing trash 
into a bag while enjoying refreshments. Each store had decals 
identifying it as a "Don't Mess with Texas" partner posted on the 
door and at the gas islands. Volunteers from Keep Texas Beauti- 
ful conducted spot checks for litter at 7-Eleven stores and ranked 


Corporate Social Marketing 

their exterior appearance. Feedback was then routed to the ap- 
propriate 7-Eleven management personnel. 23 

It was estimated that more than a quarter of a million customers 
shopped nearly 300 Texas 7-Eleven stores each day and saw the 
antilittering message, which included a reminder about the 
state's $500 maximum fine for each littering violation. 


Several significant potential downsides of social marketing campaigns 
need to be acknowledged and planned for. 

Some issues are not a good match for the corporation. Consumers 
tend to be skeptical about the motivations that a corporation has for pro- 
moting or supporting a social issue. It might even be said they have a 
nose for hidden agendas and will be quick to judge the sincerity and au- 
thenticity of the effort. In Chapter 2, for example, we described a social 
marketing initiative that McDonald's uses to promote timely childhood 
immunizations. Compare your reaction to this focus to one where a dif- 
ferent fast-food restaurant focused on physical activity for children and 
handed out brochures on recommended exercise levels for children at 
various ages to avoid childhood obesity. Could this gesture be interpreted 

Figure 5.7 This anti-littering message leveraged 7 -Eleven's 
dashboard diner® phrase with strong reach and frequency. (Reprinted 
courtesy of 7-Eleven.) 

Potential Concerns 


by many as a way to justify fast-food eating habits? Similarly, note the po- 
tential difference in acceptance and believability between an initiative 
where a tobacco company sponsors a campaign to increase the number of 
receptacles available for cigarette butts and to promote their use, versus a 
campaign to encourage parents to talk with their children about smok- 
ing. Will some people doubt the sincerity of the tobacco company's pro- 
fessed desire to prevent teens from smoking? 

For many issues and initiatives, clinical and technical expertise needs 
to be sought. Many behaviors appropriate for social marketing cam- 
paigns need to be grounded and supported by professional opinions 
(e.g., campaigns for diabetes prevention and control, reducing choles- 
terol, natural gardening, and protection from the West Nile Virus). As 
mentioned earlier, this is the advantage and perhaps necessity of seek- 
ing partners in the public or nonprofit sector with expertise in the area 
of focus. 

Behavior change and, therefore, impact does not often happen 
overnight. Internal publics especially will need to be warned up-front 
that the campaign will have milestones and that interim measures that 
indicate progress will need to be established and monitored. A litter re- 
duction campaign, for example, may focus the first year on creating 
awareness of fines, the second year on convincing citizens that fines will 
be enforced, with real behavior change not expected until the third year 
of the campaign. 

Be prepared for criticism from those who view social marketing cam- 
paigns as none of your business. Some citizen groups believe fervently 
that campaigns about issues that seem to only impact the individual 
(e.g., smoking) are interfering with personal rights and should not be of 
concern to governmental agencies or corporations. In some states where 
primary seat belt laws have been adopted, for example, citizen groups 
have been known to advocate for reversal of these policies, arguing that 
if someone wants to "kill themselves" by not wearing a seat belt, that's 
the individual's choice and right. The best preparation for these situa- 
tions is to provide facts regarding potential harm to others (e.g., statistics 
on increased diseases for children living in homes with a parent who 
smokes) and impact on public tax dollars (e.g., emergency medical costs 
for injuries that could have been prevented by a seat belt). 


Corporate Social Marketing 

Recognize that developing, even supporting a social marketing cam- 
paign involves more than writing a check. To work well, these cam- 
paigns involve more staff time for planning, implementation, and 
coordination with partners; more integration into current media and dis- 
tribution channels; increased attention to monitoring and tracking re- 
sults; and vigilance in keeping updated on trends and events relative to 
the social issue and related behaviors. 


The following three cases illustrate important principles for successful 
corporate social marketing campaigns. Highlights include an emphasis 
on selecting an issue that leverages the company's core business, em- 
ployee passions, and current marketing strategies; the importance of de- 
veloping strong and credible partnerships; and the need for long-term 
plans and commitments. 

Crest's Healthy Smiles 2010 Initiative 

Brand managers at Procter & Gamble (P&G) consider their Crest 
Healthy Smiles 2010 initiative a real success (see Figure 5.8). The fol- 
lowing is their story of how this initiative was selected, activities that 

Figure 5.8 Logo for Crest's "Healthy Smiles 2010" program, which 
includes public/private partnerships to improve oral health, particularly 
among underserved minorities. (Reprinted courtesy of P&G.) 

Keys to Success 


were involved, benefits to the brand as well as the cause, and perspec- 
tives on keys to this success. 

The Crest Healthy Smiles 2010 (CHS2010) initiative was launched 
in May 2000 in response to the Surgeon General's report describing 
oral health as a "silent epidemic" in our country, particularly among 
underserved minorities. In his report, he called for public -private 
partnerships to close the disparity gap in oral care by the year 2010. 
As a leader in oral care and historically committed to improving oral 
health beyond merely selling our products, this call to action was 
clear and a challenge we felt confident we could address in a mean- 
ingful way. Procter & Gamble's core values include improving con- 
sumers' lives. Crest Healthy Smiles 2010 is consistent with what we 
stand for as a company. 

To support CHS2010, Crest provides education, access to dental 
care, and oral care tools to underserved communities through part- 
nerships with community and nonprofit organizations. Through a 
partnership with the Boys & Girls Clubs of America, every Club 
across the country was designated a "Cavity Free Zone," a place 
where oral health is a priority. A curriculum was developed to be 
taught in these Clubs, and access to dental care is provided through 
Crest Smile Shop dental clinics located within Clubs as well as in 
mobile dental units operated in partnership with leading dental 
schools. Additionally, Crest supports dental professionals and orga- 
nizations with product and educational materials so they may bring 
education to their local communities. Finally, national advertising 
and public relations efforts were deployed to raise awareness about 
the oral health crisis and highlight Crest's role and commitment to 
closing the disparity gap. Funding for activities came from the Oral 
Care category within P&G 

In terms of benefits for the brand, this initiative has accom- 
plished the following: 

• Reinforced Crest's commitment to improving oral health. 

• Positioned the brand as a leader in Oral Care. 

• Built equity for the brand. 

• Created goodwill among the dental community — both individ- 
ual dentists/hygienists as well as professional organizations such 
as the American Dental Association and state/local societies. 


Corporate Social Marketing 

• Delivered significant PR value, driving multiple consumer 
impressions on both a national and local level, and included 
influencers (former Surgeon General Dr. David Satcher, the 
American Dental Association), celebrities (Hank Aaron, 
Vanessa Williams), professionals, and consumer advocates. 

• Generated incremental sales for the brand through partner- 
ships with key retailers. 

For the issue of oral health, to date the Crest Healthy Smiles pro- 
gram has touched over 35 million consumers with education, access 
to dental care, and/or oral care tools. Crest has raised awareness 
about the oral care crisis and impacted positive change at the com- 
munity and national level. 

Keys to this success include: 

• Gaining senior management support. 

• Choosing a cause that aligned perfectly with Crest's vision, 
mission, equity, and core competencies. 

• Staying focused on a specific audience and purpose, one 
where we knew we could make a difference. 

• Clearly defining up-front the scope of the project and funding 

• Committing to having a real social impact and developing 
plans to deliver outcomes. 

• Setting clear business objectives, goals, and measures of success. 

• Having an infrastructure that supported national as well as 
grassroots efforts. 

• Forming mutually beneficial partnerships, ones with shared 
visions and missions, ones that would extend our reach at lo- 
cal levels and create goodwill and loyalty for the brand (e.g. 
Boys 6k Girls Clubs). 

• Engaging employees to be ambassadors for the cause. 

• Recognizing our limitations and enrolling experts for guid- 
ance (i.e., American Dental Association). 

Safeco's FireFree Initiative 

Safeco, an insurance and investment company based in Seattle, Wash- 
ington, has been in business for 80 years "to help people protect what 
they value and secure their financial future." 24 

Keys to Success 


"FireFree" is a national public campaign designed by Safeco to in- 
crease resident participation in wildfire defense and mitigation behaviors 
(see Figure 5.9). It encourages homeowners to take 10 steps to create de- 
fensible space around their homes. Rose Lincoln, assistant vice president 
and director of community relations, describes a model for social initia- 
tives that Safeco thinks works. 

Safeco developed FireFree in reaction to two fires in the 1990s in the 
Bend, Oregon, area. Both fires resulted in significant damage to 
property, including the outright loss of over 50 homes. When we ap- 
proached fire officials about providing a grant, they instead suggested 
the company create an awareness campaign focused on teaching 
homeowners that by taking just 10 simple steps — a weekend's worth 
of work — they can create defensible space around their property and 
lessen the chance of loss in the event of a fire. 

In 1996, a $150,000 grant went toward the development of cam- 
paign materials that promoted "10 Tips to Wildfire Defense." A 
video and brochure were created for firefighters to use in educating 
communities. In 1997 the campaign was launched in Bend with a 
citywide cleanup. Print, television, and radio ads promoted the 
event and the 10 tips. 

We continue to spend about $50,000 each year to produce and 
distribute brochures and videos that are available at no charge to fire 

Figure 5.9 Logo for Safeco's program promoting "10 Tips to 
Wildfire Defense." (Reprinted courtesy of Safeco.) 


Corporate Social Marketing 

officials and to Safeco agents across the country who live and work 
in wildfire-prone areas and want to mobilize their communities to 
defend against wildfire. Safeco's Community Relations department 
provides the funding. As of September 2003, the company had 
shared nearly 165,000 brochures and over 750 videos in approxi- 
mately 500 cities and 36 states across the country. 

In Bend, the message continues to be delivered via mass media 
advertising, a public speakers program, and through educational ma- 
terials. There is also an annual awareness campaign in the spring 
that closes with weekend cleanups coordinated by local fire and 
forestry officials, homeowner associations, and volunteer FireFree 
neighborhood coordinators. In other cities, fire officials leverage lo- 
cal organizations' talents, including media, to maximize the reach of 
the program. 

Having Safeco's name tied to a program that helps people pre- 
vent loss has had both brand equity and brand preference benefits. 
We believe in the research that concludes that people prefer to buy 
products from companies that care. We feel that having Safeco's 
name tied to a program that helps people prevent loss increases our 
reputation as a caring company and will help us rise to the top when 
consumers are looking for insurance and investment products. 

Although we haven't tracked the outcomes in each area we've 
sent materials, we continue to get positive feedback as well as re- 
quests from new organizations that have seen the materials and are 
interested in implementing the program in their communities. 

In 2003, we sent out a national news release based on a survey 
conducted in late 2002 in four wildfire-prone areas (Denver, Col- 
orado; Flagstaff, Arizona; Spokane, Washington; and Bend, Ore- 
gon). The survey showed that 8 of 10 people in those areas were 
concerned about wildfire, and that people who are concerned about 
wildfire and know there are things they can do to lessen their chance 
of loss will take action. 

We know that the more we create awareness of the importance 
of defensible space, the more people will take action and less loss 
will occur during fires. Ultimately, FireFree has the potential to re- 
duce claims in the event of a wildfire. People living in wildfire- 
prone areas, specifically Bend, are now aware of simple steps they 
can take to reduce potential loss in the event of a fire, and they take 
those steps. 

Keys to Success 


We strongly recommend several keys to success: 

• Focus on an issue that aligns with a core business issue or cor- 
porate strength. 

• Select an initiative that will leverage a majority of your cor- 
porate citizenship work. 

• Build partnerships with knowledgeable organizations — those 
with common goals and interests. Use the partnerships to cre- 
ate programs that will have the best possible impact and most 
positive outcomes. This will create a far-reaching campaign 
that has larger impact than if it were kept solely within the 
corporation's sphere of influence. And the results are far more 
powerful than just writing a check. 

• Ensure that local distributors and participants in the program 
are given a clear role in campaign efforts and are provided 
necessary training and resources. 

This social marketing initiative has convinced us that people are in- 
terested in taking personal responsibility when armed with the facts 
and when they understand the consequences of inaction. 

The Home Depot and Water — Use It Wisely 

The Home Depot, a home improvement retailer with over 1,300 loca- 
tions and more than 250,000 associates, has a commitment to give back 
to the communities where customers live and their associates work. They 
call it "Doing Good and Doing Well." 25 In 2001, they reported investing 
$25 million to support communities and over six million volunteer 
hours. 26 The following social marketing initiative in Arizona illustrates 
the benefits of a strong private/public/not-for-profit and media partner- 
ship to encourage behavior changes in the way people use water. Home 
Depot's story is told by Park Howell, president of Park and Company, the 
marketing firm that created the Water — Use It Wisely campaign and the 
"100 Ways in 30 Days to Save Water" promotion. 27 

In the summer of 2003, The Home Depot in Arizona joined with 
"Water — Use It Wisely," a national water conservation campaign 
that incorporates education, community outreach, and mass media, 
to encourage citizens to save water by showing them how. The ma- 
jority of the 100-plus water-saving tips at the core of the campaign 


Corporate Social Marketing 

encourage behavioral changes in the way people use water, includ- 
ing specific recommendations such as use a hose nozzle; sweep your 
driveways and sidewalks instead of hosing them off; and turn your 
sprinklers back in the fall. The "100 Ways in 30 Days to Save Wa- 
ter" promotion provided a focused, month-long forum where the 
city and other "Water — Use It Wisely" partners sponsored weekend 
water conservation workshops in 39 Arizona Home Depot stores. 
Phoenix, Mesa, Scottsdale, the Arizona Department of Water Re- 
sources, and 1 7 other "Water — Use It Wisely" partners teamed with 
Home Depot to develop a comprehensive conservation training 
program for the home improvement retailer's customers. The city 
and state conservation experts first trained more than 120 Home 
Depot managers and their assistants, who in turn trained their store 
employees, to host weekend conservation classes. Each week fea- 
tured a new topic. Additionally, Salt River Project (SRP), the 
Phoenix metropolitan area's largest wholesale water provider and an 
ongoing campaign partner, cosponsored the promotion, providing 
considerable financial and media support. Additionally, SRP pro- 
vided numerous in-kind services including printing of the in-store 
banners, which contributed to the overall awareness and success of 
the event. 

In-store banners, signage, and a 24-page color consumer guide on 
water conservation were the primary campaign elements (see Figure 
5.10). Awareness was created through statewide advertising and pub- 
lic relations efforts, water bill inserts, NFL Cardinal's football game 
promotion, and grassroots-level communication via the local Home 
Depot stores, including in-store signage and banners, Home Depot as- 
sociate shirts, and buttons. Additionally, pro- 
vided the Web portal for detailed information on the 100 ways to 
conserve water. 

Media sponsors bolstered the statewide TV advertising effort 
with a 95 percent household reach in Arizona. In addition to a 
$100,000 media buy, News Channel 3 provided extensive news cov- 
erage on the promotion, featured it on its Saturday garden show, and 
allowed the use of its TV personality, Dave Owens, "The Garden 
Guy." Public relations efforts where coordinated by Park & Co., the 
creators of the "Water — Use It Wisely" campaign, with Home Depot 
and SRP support. Additional funding for print advertising was sup- 
plied by the City of Phoenix. The promotion generated more than 

Keys to Success 


Figure 5.10 This brochure for a public/private partnership featured 
water-saving devices and clinics available at Home Depot. (Reprinted 
courtesy of Park & Company and Home Depot.) 

4-3 million customer impressions through Arizona Home Depots and 
millions of impressions through the media. Approximately 40,000 
consumer conservation guides were distributed, as well as more than 
60,000 "Watering by the Numbers" irrigation guides and countless 
conservation brochures. 

Chicanos Por La Causa (CPLC) was selected as the statewide 
charity to benefit from the promotion, which included Home Depot 
retrofitting fixtures and installing low-water-use landscapes in CPLC 
neighborhoods, offering a very visible example of Home Depot's 
commitment to its communities and the environment. 

From Home Depot's perspective, this effort helped to meet sev- 
eral marketing objectives, including the following: 

• Partnering with city and state water conservation officials in a 
concerted effort to bring conservation training and informa- 
tion to the public. 

• Reinforcing Home Depot's and SRP's positions as leaders in 
environmental initiatives. 

• Reinforcing Home Depot's and SRP's character of being good 


Corporate Social Marketing 

• Generating retail sales of water conservation products, in- 
cluding everything from hose nozzles and water-efficient 
showerheads and toilets, to low-water-use plants and irriga- 
tion systems. 

What we believe worked well about this effort is that the cause 
aligned perfectly with Home Depot's environmental initiatives, and 
its senior management was instrumental in bringing together all 39 
stores for a day of intensive conservation training with the cities and 
state, a training that led to the ultimate success of the weekend 

A strong recommendation is to get as many people, experts, and 
organizations involved as possible who are in step with your vision. 


Based on the unique characteristic of social marketing campaigns (a fo- 
cus on behavior change), the following situations should signal an op- 
portunity to consider the social marketing option: 

• When the primary objectives of an initiative are to support cor- 
porate marketing goals and objectives, versus corporate giving 
or community involvement agendas (e.g., an electronics store 
wants to build traffic and advertises that according to the public 
health department, it's time to check your home fire alarm bat- 
teries this weekend, a discount special on them is available in 
all its locations). 

• When the issue the organization wants to support (e.g., healthy 
children) is one that has the potential for an individual behavior 
change component (e.g., a fast-food restaurant teams up with the 
local children's hospital and community health clinics to print an 
immunization schedule on tray liners). 

• When the dollars for support of the initiative are coming primar- 
ily from the marketing department and can therefore be managed 
and integrated into marketing communications (e.g., a produce 
company putting the national "5 A Day" logo on packaging, ad- 
vertisements, and coupons). 

Developing a Corporate Social Marketing Campaign Plan 141 

• When the behavior can be tied to one or more corporate products 
and then integrated into their features, pricing, distribution chan- 
nels, and promotions (e.g., a life vest manufacturer attaching wa- 
ter safety tips to labels, creating retail displays on how to choose a 
life vest that's right for your child, and then distributing discount 
coupons via a local children's hospital). 



A planned approach is key to success, the following eight steps and prin- 
ciples are recommended for developing a strategic social marketing 
plan. 28 It is also highly recommended that partners be identified prior to 
this formal planning process and be involved in developing each step of 
the plan. 

1. Conduct a situation analysis, which begins with a statement of 
campaign purpose and focus, as well as an analysis of internal 
strengths and weaknesses and external opportunities and threats. 
Special efforts should be made at this step to review past and sim- 
ilar campaigns for lessons learned, as well as potential for replica- 
tion (e.g. the "Click It or Ticket" campaign to enforce seat belt 
use, adopted by many states across the nation, was initiated by 
one state, North Carolina). 

2. Select target audiences, starting with those who have the greatest 
need, are easiest to reach, are the best match for the organizations 
involved, and are most ready for action (e.g., newly pregnant 
women as a focus for a tobacco "Quitline"). 

3. Set behavior objectives (the desired behavior) and behavior change 
goals. One key to success at this step is to establish behavior ob- 
jectives that are single, simple, doable acts that become the core 
of the campaign effort (e.g., put an infant on its back to sleep). 
Quantifiable goals are established in terms of behavior change in 
the targeted population, similar to sales goals in the corporate 
marketing model. 

4. Determine barriers and motivations to behavior change. Identify per- 
ceived costs and benefits to the desired behavior, as they provide 


Corporate Social Marketing 

rich material for developing strategies. In addition, it is at this 
stage that we also identify the competition, namely behaviors the 
target audience is currently doing or prefers to do (e.g., placing 
infants on their stomach). 

5. Develop the marketing mix, including product, price, place, and 
promotional strategies, ones that uniquely and strategically ad- 
dress the barriers and motivations that target audiences have for 
adopting the desired behavior. A few keys to success for each of 
these four Ps include the following: 

• Product: Include a tangible object or service in the cam- 
paign, something that will facilitate the desired behavior 
(e.g., litterbags handed out by mini-marts in support of a 
state litter prevention campaign). 

• Price: Look for nonmonetary forms of recognition that add 
value to the exchange (e.g., Backyard Wildlife Sanctuary 
plaques for homeowners agreeing to natural yard care prac- 
tices, provided by a local nursery). 

• Place: Look for ways to make performing the desired behav- 
ior convenient (e.g., dental care offered in mobile vans 
sponsored by an insurance company). 

• Promotion: Develop messages prior to selecting media chan- 
nels. Focus on messages that are clear, vivid, and concrete 
(e.g., "Don't Mess With Texas") and media channels that 
provide constant reminders and are sustainable over time 
(e.g., state road signs with litter fines and corporate sponsor 

6. Develop a plan for evaluation and monitoring. Evaluation should be 
based on measuring behavior change goals established in step 3, 
providing a real outcome measure. In addition, evaluation plans 
can be developed to measure changes in awareness and attitudes, 
as well as campaign processes (e.g., reach and frequency of cam- 
paigns and dissemination of materials). 

7. Establish budgets and find funding sources. Opportunities should 
be explored for corporate partnerships with all sectors: public 
agencies, nonprofit organizations, foundations, and special in- 
terest groups. 



8. Complete an implementation plan. A three-year plan is ideal, recog- 
nizing that behavior change may be slow to come and that time is 
often needed to educate, change attitudes, and provide infrastruc- 
tures to support behavior change (e.g., more litter receptacles). 


Corporate social marketing is most clearly distinguished from other cor- 
porate social initiatives by its focus on individual behavior change, changes 
that will help improve health, prevent injuries, protect the environment, 
and increase community involvement. Potential corporate benefits are 
greatest for supporting marketing goals and objectives including strength- 
ening brand positioning, creating brand preference, building traffic, and 
increasing sales. Potential and significant additional benefits beyond mar- 
keting include improving profitability and making a real social impact. 

Several concerns and potential pitfalls with corporate social market- 
ing campaigns are real. Some social issues, although important, are not 
an authentic fit for the corporation. For many issues and initiatives, clin- 
ical and technical expertise needs to be sought. Behavior change, and 
therefore impact, does not often happen overnight, and key publics and 
partners need to be forewarned. Be prepared for criticism from those who 
view social marketing campaigns as "none of your business." And recog- 
nize that developing, even supporting a social marketing campaign in- 
volves more than just writing a check. 

Corporate managers experienced in these campaigns emphasize sev- 
eral keys to success: Pick an issue connected to the organization's core 
business, employees, and current marketing strategies; focus on an initia- 
tive that has the potential for a long-term commitment; gain manage- 
ment support; partner with public sector and nonprofit organizations who 
can provide expertise, credibility, and extended reach into communities; 
and develop solid plans (up-front) with established funding, measurable 
goals, and clear roles and responsibilities. Finally, as with any strategic 
marketing effort, a sequential planning process is fundamental and will 
involve audience research and utilization of all key marketing tools. 



Corporate Philanthropy: 

Making a Direct 
Contribution to a Cause 

"Your ads are obnoxious. Sunny is disgusting in them. We swore we 
would rather sleep on concrete than buy a bed from you because of her 
ads. But we came because of your role in the community and we stayed 
because of the service we received at your store." 

— Comment card given to CEO Sunny 
Kobe Cook, Sleep Country U.S.A. 

Corporate philanthropy is a direct contribution by a corporation to a 
charity or cause, most often in the form of cash grants, donations 
and/or in-kind services. It is perhaps the most traditional of all 
corporate social initiatives and has historically been a major source of 
support for community health and human service agencies, education, 
and the arts, as well as organizations with missions to protect the envi- 
ronment. These corporate donations are often critical to a nonprofit's 
operating budgets, capital expenditures, and special projects, filling the 
gap between expenses and revenues from programs and contributions 
from individual donors. Other terminology most closely associated with 


Typical Programs 


this initiative includes community giving, community relations, corpo- 
rate citizenship, and community affairs. 

Some models and definitions include employee volunteerism as a 
form of corporate philanthropy. We have distinguished community vol- 
unteering as a separate initiative in Chapter 7, as it has unique charac- 
teristics related to corporate benefits, potential concerns, keys for 
success, and decision making related to developing and implementing 
corporate programs. Similarly, we earlier distinguished cause promotions 
from philanthropy as those communication-oriented initiatives focused 
on efforts specifically designed to increase awareness and concern about 
a particular issue. 

Most agree that the character of corporate philanthropy has matured 
over the decades, primarily in response to internal and external pressures 
to balance concerns for shareholder wealth with expectations to demon- 
strate responsibility for communities contributing to the corporation's 
livelihood. 1 Perhaps the most consistent response has been to move to a 
more strategic approach to selecting social issues to support, with an in- 
creased tendency to choose an area of focus and to tie philanthropic ac- 
tivities to the company's business goals and objectives. Second, there 
appear to be more long-term relationships being developed with non- 
profit organizations, ones that look more like a partnership than a casual 
acquaintance or one-night stand. Third, corporations have expanded 
their options for giving beyond cash donations to include contributions 
of other (often less costly) corporate resources such as excess products, 
use of distribution channels, and technical expertise. Fourth, we see in- 
creased interest in involving employees in decision making regarding the 
prioritization and selection of recipients for philanthropic programs. 
Fifth, as with other initiatives, the spotlight appears to be fixed on deter- 
mining ways to track and measure outcomes, even rates of return on con- 
tributions. Finally, as a reflection of globalization, giving has now 
expanded to include international communities where corporations are 
also doing business. 2 


Philanthropic efforts commonly involve selecting a cause that reflects a 
priority area for the corporation, determining the type of contribution to 


Corporate Philanthropy 

be made, and identifying a recipient for contributions, most often an ex- 
isting nonprofit organization, foundation, or public agency such as a 
school. The range of options for giving are summarized here and, as indi- 
cated, are varied, with trends mentioned earlier that are breaking from 
the tradition of cash donations to creative giving strategies that make 
use of other (sometimes idle) corporate resources. 

• Providing cash donations (e.g., making contributions to United 
Way, providing financial support for a YMCA teen program, or 
making a donation to provide emergency funding for those who 
lost their jobs as a result of the attacks of 9/1 1 ) 

• Offering grants (e.g., providing a grant to a nonprofit organization 
to help with startup costs for offering voice mail for homeless peo- 
ple who are job hunting, or offering grants to nonprofit organiza- 
tions and schools to support environmental education) 

• Awarding scholarships (e.g., scholarships that enable minority stu- 
dents to attend college and pursue a career in restaurant manage- 
ment, or scholarships for high school students in a third world 
country to spend their senior year as an exchange student in the 
United States) 

• Donating products (e.g., providing used shoes that can be recycled 
for athletic tracks, or infant car seats that can be given to families in 
need when leaving the hospital; or a local diner bringing cheese- 
burgers and milkshakes to a homeless shelter several nights a week) 

• Donating services (e.g., printing child immunization schedules for a 
community health clinic, providing call center support for a hot- 
line to report littering on freeways, or offering free dental care for 
families in a domestic violence shelter) 

• Providing technical expertise (e.g., sharing strategies for setting up 
inventory control systems, or reviewing health education materi- 
als for technical content regarding nutritional guidelines) 

• Allowing the use of facilities and distribution channels (e.g., car dealer- 
ships that make room for car seat inspections, or grocery stores 
that provide space for collection of canned goods for food banks) 

• Offering the use of equipment (e.g., vans for transporting materials 
for a science exhibit to schools, or medical equipment offered for 
use at a health fair) 

Potential Benefits 


Recipients of these contributions are most often existing nonprofits 
and foundations in the community, and may even have an existing rela- 
tionship with the corporation. They may also be public agencies such as 
schools or foundations that have been created by the corporation and 
that then manage and distribute funds. As noted in Table 6.1, there may 
be additional partners in the effort, even some that also provide funding 
for the cause. 

Guidelines for determining levels of giving vary. Many companies 
budget their donations based on the prior year's income. Some target a 
percentage of pretax earnings. Business for Social Responsibility de- 
scribes giving patterns in its "Issue Brief on Philanthropy," including an 
estimate that "the average pretax percentage-level of corporate giving 
ranges from 1.3 percent (according to the American Association of 
Fundraising Counsel) to 0.7 percent (according to the Conference 
Board)." 3 In 2002 Forbes reported giving levels of the top "Forbes 500" 
companies, looking at cash donations in 2002 as a percentage of operat- 
ing income in 2001. It then ranked companies with the top scores, in- 
cluding Target (cash giving at 2.56 percent of operating income), 
MetLife (2.51 percent), Albertson's (2.42 percent), Best Buy (2.05 per- 
cent), Ford Motor (1.76 percent), Cisco Systems (1.6 percent), Ameri- 
can Express (1.39 percent), DuPont (1.33 percent), Altria Group (1.29 
percent), and J. P. Morgan Chase (1.21 percent). 4 

Table 6.1 highlights examples of philanthropic programs for a variety 
of firms, for a variety of causes. 


On the surface, involvement in philanthropic activities appears to con- 
tribute most to the image and regard for the corporation among its varied 
publics, including customers, employees, and community organizations, 
especially ones that track and report on corporate giving. Many man- 
agers point to increased respect and community good will and a stronger 
desired brand position. 

In an article in the Harvard Business Review in 2002, Michael Porter 
and Mark Kramer argue that philanthropic activities can (and should) 
go beyond generating goodwill. They cite examples of how activities can 
enhance a company's productivity (e.g., Exxon Mobil making substantial 
donations to improve roads in developing countries where it operates), 

Table 6. 1 Examples of Corporate Philanthropy Initiatives 



Major Contributions 


Major Partners 

ConAgra Foods 

Children's hunger 

Delivery trucks 
Tracking system 

Food hanks nationwide 

America's Second 

Local children's 

programs and 


General Electric 

Outdoor lighting at 
national landmarks 

Anti-glare fixtures 

Yellowstone National Park 


National Parks 

The New York Times Journalism 

Cash contributions 
Institutes for journalists 


Experts in the field 
of journalism 

General Motors 

Highway safety 

Funding and providing 
vans for car seat 
inspections and delivery 
of M ADD program 

National SAFE Kids 

Mothers Against Drunk 

Drivers (MADD) 

United Auto 


General Mills 

Childhood nutrition and 
physical activity 

Grants for local 

community organizations 

Local nonprofits, 
organizations, and 

American Dietetic 

Kenneth Cole 

Homelessness, AIDS, 
handgun control and 
safety, children in 
domestic violence 

Cash contributions to 
nonprofit organizations 
and foundations 

Cause promotions in 

Several nonprofit 
organizations and 
foundations with 
missions supporting 
these causes 

Major nonprofits 
with missions 
related to major 


Technology skills 

Grants in cash and 


communities worldwide 

technology learning 



Early learning and 
child care 

Funding to support 
opening of a child 
care center 

Early Learning and 

Family Childcare Center 


Community College 


Conservation and 
outdoor recreation 


Nonprofit organizations 
and community groups 



Corporate Philanthropy 

expand markets (e.g., Apple Computer donating computers to schools, 
increasing the usage and appeal of their systems), and ensure a strong fu- 
ture workforce (e.g., American Express supporting training for students 
pursuing careers in travel agencies). 5 

The following examples point to these as well as additional benefits 
from involvement in corporate philanthropic activities, including 
strengthening the company's industry (e.g., the New York Times educat- 
ing and inspiring journalists), gaining the satisfaction of having a signifi- 
cant impact on societal problems (e.g., grants from General Mills to 
support local youth nutrition and fitness programs), and leveraging the 
availability of excess or idle corporate resources (e.g., General Motors 
providing vans to support car seat safety inspections). 

Building Reputation with Respected Organizations 

The U.S. Department of Agriculture estimates that 13 million Ameri- 
can children are fighting hunger each year, and America's Second Har- 
vest estimates that one of four people standing in line at a soup kitchen 
is a child. 6 A partnership between ConAgra Foods, Inc., one of North 
America's largest packaged-food companies, and America's Second Har- 
vest, the nation's largest domestic hunger relief organization, seems like 
a natural to address this national challenge. 7 Although the philan- 
thropic nature of this initiative is featured in this example, activities 
also include various cause promotion efforts and community volun- 
teerism among employees. 

Example: ConAgra Foods and Feeding Hungry Children 

ConAgra Foods' "Feeding Children Better" initiative launched in 
1999, represents a multiyear, multimillion-dollar commitment 
and is reported to be the nation's largest corporate initiative ded- 
icated solely to fighting child hunger in the United States (see 
Figure 6.1). 8 Efforts are directed in three areas: funding for Kids 
Cafes, a national program of America's Second Harvest; improv- 
ing technological and transportation efficiencies of the food 
bank distribution systems; and raising public awareness of this 
country's child hunger problem. 9 

Potential Benefits 


Kid Cafes are partnerships with after-school and summer feeding 
programs that provide children with nutritious meals. ConAgra 
Foods partners with America's Second Harvest and its national 
network of more than 200 food banks and food-rescue organiza- 
tions to help fund Kids Cafes and is the program's national spon- 
sor. Cafes are located in facilities such as YMCAs and Boys & 
Girls Clubs and in other family resource centers. In October 
2003, for example, a news release announced the grand opening 
of a Kids Cafe at the Lincoln Early Intervention Center in 
Pocatello, Idaho, that will provide an evening meal once a week 
for 160 school-age kids. 

As a part of this initiative, ConAgra Food also funds Rapid Food 
Distribution System, a computerized nationwide inventory and 
trucking system that enables food banks to get food to destina- 
tions faster and cheaper. The program is reported to have the po- 
tential to reclaim up to 200 million pounds of food available for 
donation, which might otherwise be discarded. 10 

By the end of 2003, ConAgra Foods had provided funding for 
more than 160 Kids Cafes, donated 122 trucks for food banks, as- 
sisted food banks around the nation with logistics assistance and 
inventory control system upgrades, and sponsored a national 
public service advertising campaign to raise awareness of child 
hunger in the United States. 11 


Figure 6. 1 Program logo for ConAgra's initiative to help feed 
hungry children. (Reprinted courtesy of ConAgra Foods.) 


Corporate Philanthropy 

Creating Community Qoodwill and National Attention 

A GE Consumer Products manager explains that they look for philan- 
thropic projects that are a natural fit for their products and their busi- 
ness, ones where they can lend expertise to the cause and at the same 
time support overall corporate citizenship goals. As with most compa- 
nies, they enjoy projects that will also glean national attention and build 
goodwill for the brand, as evidenced in the following initiative. 

Example: GE Helps Stars Shine 
More Brightly Over Old Faithful 

Over the years, GE has been a leader in support of great national 
landmarks, including the Washington Monument and the 
Statue of Liberty. As national interest in dark skies and concern 
with light pollution has continued to grow, GE turned its atten- 
tion to another national icon, Yellowstone Park, and the historic 
Old Faithful geyser area. 

In May 2002, the GE Foundation, the philanthropic organiza- 
tion of the General Electric Company, announced a new pro- 
gram in cooperation with the National Park Service and the 
Yellowstone Park Foundation to restore the night sky (dark sky) 
over Yellowstone in Bozeman, Montana. The program was 
timed to celebrate the 100th anniversary of the Old Faithful 
Inn and targets the "sky glow" in the Old Faithful village, as 
well as other major visitor areas in Yellowstone National Park 
(see Figure 6.2). 

Based on an audit conducted by the National Parks Service, GE 
Lighting, and GE Lighting Systems, GE agreed to donate 50 
antiglare fixtures and the foundation made a 2002 grant of 
nearly $100,000 to support the overall effort to return the dark 
skies over Yellowstone. Over a three-to-five-year period, support 
will amount to $200,000 including GE Foundation grants and 
product-in-kind donations. 

Yellowstone Foundation announced the partnership and the ini- 
tial grant on their press letterhead. According to a GE 
spokesperson, "the media and headline writers liked the irony 
that a light bulb manufacturer would take the initiative to lower 

Potential Benefits 


light levels." GE also publicized the announcement at a lighting 
industry trade show press conference. 

For GE, this philanthropic initiative provided numerous bene- 
fits. A GE manager commented that "being associated with a 
treasured national park that can use our products to achieve a 
more aesthetic, environmentally sensitive lighting scheme 
brings tremendous pride to our employees and gleaned positive 
press coverage and national attention, promoting goodwill for 
the brand. Since the press coverage of the program, groups lead- 
ing similar efforts, such as the International Dark Sky Associa- 
tion, have also contacted us to become even more involved in 
this cause. And, importantly, this project has proved to be an ex- 
cellent learning experience for us to develop superior lighting 
products for diverse lighting applications such as this." 12 


Corporate Philanthropy 

Strengthening the Corporation's Industry 

Some philanthropic efforts are directed to longer-term benefits, ones 
that help ensure a stronger future for the company. This may include 
supporting efforts that train a future workforce, ones that cultivate rela- 
tionships with high-quality suppliers, and others that build goodwill with 
the general public, regulatory agencies and policy makers. In the follow- 
ing example, a strong philanthropic effort supports the future of The New 
York Times, as well as that of journalism. 

Example: The New York Times 
Supporting Journalism and Journalists 

The New York Times Company Foundation supports a variety of 
philanthropic activities, including providing grants to domestic 
organizations in five fields: journalism, education, culture, envi- 
ronment, and service; matching gifts of employees, directors, 
and retirees; providing college scholarships; raising funds for the 
Neediest Cases during the holiday season; and supporting an ele- 
mentary school in Manhattan named for the publisher who 
founded the modern New York Times in 1896. 

In the foundation's 2002 Annual Report, activities reflecting 
its special emphasis on supporting journalists and the field of 
journalism were highlighted (see Figure 6.3). In 2000, an ini- 
tiative was launched to offer week-long courses designed to in- 
spire and educate journalists on emerging new subjects. 
Participants were supported through web sites that provided a 
forum for information exchange, which included offering 
"journalists everywhere access to information about the sub- 
ject." 13 In 2002, the program continued its expansion, offering 
five Institutes for journalists: Homeland Security, Theater 
Criticism, Foreign Language Press, the Age Boom Academy, 
and Frontiers of Brain Research. In 2002, these Institutes pro- 
vided specialized training to over 60 writers and producers. 
Foundation grants also continued to support high school jour- 
nalism, and the foundation continued to provide a service 
called Campus Weblines, designed to assist students in creat- 
ing online school newspapers. 

Potential Benefits 

Figure 6.3 The New York Times Company Foundation places a 
special emphasis on supporting journalism and journalists. 
(Photo: James Estrin for The New York Times.) 


Corporate Philanthropy 

Additional philanthropic efforts to support journalism in the past 
included a contribution in 1997 for $50,000, the first of two in- 
stallments, to the School of Journalism and Mass Communica- 
tion at the University of North Carolina at Chapel Hill. The 
grant was given for purchasing equipment, books, and periodi- 
cals. In recognition, the university named a seminar room the 
New York Times Company Foundation Seminar Room in 1998. 14 

In 2003 the Times Company was ranked number one in the pub- 
lishing industry in Fortune's list of "America's Most Admired 
Companies," for the third consecutive year. The Times Com- 
pany was also named in Business Ethics magazine's 2003 list of 
the "100 Best Corporate Citizens." 

Building and Securing a Strong Brand Position 

The following example, albeit a small company relative to many featured 
in this book, illustrates the potential for integration of a company's core 
values with philanthropic choices and desired brand positioning. Per- 
haps, as some think, this strategy represents a new type of philanthropy, 
one that is as much a part of the brand as the product itself. 

Example: Kenneth Cole and Social Change 

The American Foundation for AIDS Research is quoted as stat- 
ing that "Kenneth Cole has made one of the single most remark- 
able philanthropic commitments in contemporary America, a 
commitment that breaks down the barriers between the public 
interest and corporate sectors and between deeply held personal 
values of equality and justice and day-to-day business concerns. 
In doing so, he proves that a social conscience and business acu- 
men are not mutually exclusive and provides a role model for a 
new kind of corporate philanthropy." 15 

Major causes and organizations that Kenneth Cole Productions, 
Inc., supports are ones labeled on the company's web site as "Just 
Causes" and include nonprofit organizations with missions re- 
lated to AIDS, the homeless, and mentoring for children in do- 
mestic violence shelters; the Sundance Institute, which supports 

Potential Benefits 


screenwriters, directors, and documentary films; handgun con- 
trol and safety; voting; protecting rivers and watersheds in New 
York; and providing funds and services to families in the 
footwear industry. 

Historically, the company's advertising campaigns have reflected 
the founder's social consciousness and have been considered con- 
troversial by some, funny by others, and inspiring to many. As a 
noteworthy potential strategy for others engaged in corporate so- 
cial initiatives, Cole's philanthropic activities are often inte- 
grated in the company's advertisements and, according to a 2003 
article in the Washington Post, are known for their "snappy one- 
liners to promote a social agenda, burnish his corporate image, 
and sell his shoes." 16 Several examples of these one-liners were 
cited in this article and featured as follows, demonstrating the 
strategic use of philanthropy to claim and own a brand position: 

• "Our shoes aren't the only thing we encourage you to wear" 
was a tagline that appeared in Cole advertisements in the 
late 1980s, accompanied by a graphic of a condom. 

• "Have a heart, give a sole" was used with a visual where ads 
showed "tattered work boots of the homeless in lieu of a 
shiny pair of loafers." (See Figure 6.4.) The ads then 
promised a discount on a pair of new shoes if a customer 
donated a pair of their old ones to the homeless. 

• "Buy a pair of Kenneth Cole Shoes and you might be re- 
sponsible for bringing one homeless person in from the 
cold" read another billboard ad, which, as noted in the 
Washington Post article, was in sharp contrast with others in 
the industry. "Gucci advertising promises its customers a 
night of sweaty sex. Hermes ads suggest that a shopper has 
finally earned the keys to a private club." 

• "Red, white and blue. It's the new black" was a line that ap- 
peared in January 2002, ringing in the New Year with a lit- 
tle humor, patriotism, and branding combined. 17 

• Footnotes: What You Stand For Is More Important Than What 
You Stand In is the title of a new book authored by Cole 
and published in the fall of 2003, telling the story of his 


Corporate Philanthropy 

Figure 6.4 Cole's philanthropic efforts are often integrated 
in advertising. (Reprinted courtesy of Kenneth Cole Productions.) 

Having an Impact on Societal Issues in Local Communities 

Bill Shore asserts in his book The Cathedral Within that "the one thing 
more tragic than an incurable disease is knowing effective treatment and 
withholding it or failing to ensure widespread use. . . . Medical science 
does not waste resources by continuing to research a polio vaccine when 
we've long had a very good one. The challenge is to take what works and 
ensure its wider availability." 18 In the following example, a corporation's 
nationwide philanthropic effort seeks to tackle a major societal problem 
(youth nutrition and fitness) at local community levels. As described, 
the goal of the initiative is to grant funding that will either provide in- 
creased access to existing successful programs or will encourage the de- 

Potential Benefits 159 



Figure 6.5 Grants for youth nutrition and fitness are a major initiative 
of the General Mills' community involvement program. (Reprinted 
courtesy of General Mills.) 

velopment of promising programs that might then be replicated in other 
communities across the country. 

Example: General Mills and 
Youth Nutrition and Fitness Grants 

In 2002, the General Mills Foundation launched an initiative 
with the American Dietetic Association Foundation and others 
to encourage communities in the United States to improve the 
eating and physical activity patterns of young people, ages 2 to 
20 (see Figure 6.5). Of real interest was assuring that programs 


Corporate Philanthropy 

that had been proven through research to be successful were ac- 
cessible and implemented at local levels. The joint initiative, 
called General Mills Champions, provides grants for up to 
$10,000 to 50 community-based groups to help youth maintain a 
balanced diet and physically active lifestyle. Additional compo- 
nents of the initiative include sponsorship of the Presidential 
Active Lifestyle Awards (for up to 50,000 youth each year), de- 
veloping nutrition and fitness mentoring models, and sharing 
best practices. Annual funding is provided by the General Mills 
Foundation and ranges from $750,000 to $1 million. In the first 
year that grants were offered, over 650 applications for the 50- 
plus grants were received. 

Grants are provided to diverse groups and projects. One in 
Wyoming, for example, targets at-risk girls ages 12 to 19 residing 
in a state correctional facility. Another in Oklahoma will use 
Native American cultural activities such as Native dancing as a 
way to incorporate more physical activity in the classroom. In 
Missouri, a new "A Healthier You" Girl Scout badge will be in- 
troduced. A project in South Carolina will focus on a commu- 
nity garden for underserved youth ages 5 to 14, and in 
Massachusetts efforts will include audio announcements with 
nutrition and physical activities messages that will be broadcast 
over 10 elementary schools' public address systems. 

The President of the General Mills Foundation recommends to 
others considering and developing philanthropic initiatives to 
"select a focus area that management believes in; make sure it is 
one you can make a long-term commitment to with a high-in- 
tegrity nonprofit organization; ensure it is a cause important to 
your consumers; and find ways for employees to participate." 19 

Providing Opportunities for Noncash/In-Kind Contributions 

Corporate philanthropy offers opportunities for corporations to support 
causes through in-kind donations as well as cash and grant contributions. 
These may take the form of donations of services or products, or the use 
of a corporation's existing distribution and communication channels. For 
some corporations, this provides a more strategic way to contribute to 

Potential Benefits 



Proud Program Partners 

Figure 6.6 General Motors is a major supporter of the National SAFE 
KIDS Campaign. (Reprinted courtesy of General Motors.) 

causes, as it often provides opportunities to connect the company's prod- 
ucts with the cause. In the following example, in-kind contributions, as 
well as financial support, are closely aligned with the company's core 
business, products, and consumer markets. 

Example: General Motors and Safe Driving 

As outlined in their Corporate Responsibility and Sustainability 
Report for 2001-2002, General Motors supports several social 
initiatives and programs to encourage safe driving, including 
ones focusing on child restraint and safety belt use, drunk dri- 
ving prevention, occupant compartment and trunk anti-entrap- 
ment, young drivers, and distracted driving. Some issues are 
supported with cause promotion initiatives (e.g., support for a 
campaign to educate the public on the facts associated with re- 
straint); several with corporate social marketing initiatives (e.g., 
a brochure addressing child safety called "Never Leave Your 
Child Alone," with millions of copies distributed through deal- 
erships and public health offices); some with socially responsible 
business practices (e.g., research and development related to 
technology and standards to minimize driving distractions); and 
several featuring employee volunteerism (e.g., dealerships partic- 
ipating in car seat safety checks). 20 

In terms of philanthropic activities, the focus of this chapter, 
several of their major initiatives related to safe driving include 
partnerships with well-known national organizations and pro- 
grams, including the National SAFE KIDS Campaign (see Fig- 
ure 6.6) and MADD (Mothers Against Drunk Driving), United 


Corporate Philanthropy 

Auto Workers, and the NAACP. 21 Philanthropic activities to 
support causes have included financial support as well as those 
with a core connection to GM products and distribution chan- 
nels: supporting child safety seat inspection stations; educating 
dealers on child safety; donating child safety seats to low-income 
families; and providing fully equipped vans in order to hold a 
traveling child safety seat check-up event, as well as vans to 
transport program materials and presenters for MADD programs. 


Several challenges and concerns associated with philanthropic efforts 
are similar to those experienced when developing and implementing 
other social initiatives. Care needs to be given to finding and selecting a 
nonprofit charity and partner that has a strong reputation, is easy to 
work with, and has an existing infrastructure that will assure the effec- 
tive management and utilization of contributions. As with other initia- 
tives, managers may need to address shareholder concerns that the 
company should not be funding social causes that are or should be within 
the auspices of governmental agencies. This may be especially true when 
making large cash contributions. 

Many issues, however, are more unique to philanthropic activities. 
Compared with other initiatives, there is often less visibility for these ac- 
tivities. By their nature, cause promotions, cause-related marketing, and 
social marketing efforts gain visibility for the company's role through 
communications inherent in campaign activities. Community volun- 
teerism naturally puts a face on the contributions the company is mak- 
ing, often creating strong personal relationships and goodwill. Socially 
responsible business practices are often publicized by the corporation, as 
they represent opportunities to showcase concrete actions the company 
is taking to contribute to communities and the environment, especially 
to regulatory and policy making audiences. Some feel strongly that phil- 
anthropic activities should not be touted, believing that their actions 
will speak louder than words and the public will be even more convinced 
the activity is a public relations stunt if resources are used especially for 
external communications. Others take note of opinion polls cited in 
Chapter 1 that indicate the public expects and watches for the com- 

Keys to Success 


pany's philanthropic activities and often makes purchase decisions based 
on awareness and knowledge of a company's giving. 

An additional challenge for managers of philanthropic initiatives is to 
track activities and measure outcomes. Again, communication-related ac- 
tivities in cause promotions can be measured in terms of reach, frequency, 
and consumer impressions. Cause-related marketing and social marketing 
campaigns can even take this a step further, with actions and behaviors 
typically tracked and reported. Employee volunteer hours can be calcu- 
lated and their impact often weighed (e.g., numbers of pounds of litter col- 
lected from a community park). By contrast, philanthropic activities often 
depend on feedback on outcomes and impact from the nonprofit charity, 
which may be lacking such measurement systems. Additionally, assigning 
values to in-kind contributions can be difficult and time consuming, espe- 
cially for a national or global corporation. Finally, managers in companies 
without a set of guidelines and targets for giving will struggle for direction 
and consensus on levels and types of giving. 


Several keys to success for this initiative are similar to those for other ini- 
tiatives. Choose a cause for contributions that has a connection to your 
business, your employees, and your overall corporate citizenship focus. 
Make certain leaders in the company are involved from the beginning, es- 
pecially in major philanthropic efforts. Select the best grantees, find a way 
to make a concrete and positive difference, and consider multiyear part- 
nerships with the charity as well as with for-profit corporations that can 
leverage contributions. Explore opportunities for donations of in-kind ser- 
vices, especially those connected to core products. Finally, don't be shy, 
but do be appropriate about talking about results and celebrating success. 

Executives from Microsoft, Costco Wholesale, and Recreational 
Equipment Inc. (REI) share their applications of these principles and 
elaborate on their guidelines for developing and implementing their 
philanthropic programs in the following three cases. 


Of special interest in this next case is the clear integration and coordina- 
tion of a philanthropic initiative with the corporation's mission and 


Corporate Philanthropy 


Unlimited l 
Potential ' 


A community learning program 

Figure 6.7 Microsoft's Unlimited Potential initiative is a natural 
evolution of the company's mission. (Reprinted courtesy of Microsoft.) 

branding efforts. Microsoft's Managing Director of Global Corporate Af- 
fairs describes a strategic philanthropic initiative and shares what the 
company did to integrate the effort with the company's mission and 
brand positioning. 

Confirming our belief that amazing things happen when people have 
the resources they need, Microsoft has seen remarkable results from 
our community investment efforts. 

In today's knowledge-based economy, computer literacy has be- 
come a vital workplace skill — a skill that millions of people world- 
wide still lack. To help narrow this skills gap and aid global 
workforce development, in September 2003 Microsoft Corporation 
launched Unlimited Potential (UP), a global initiative focused on 
providing technology skills for disadvantaged individuals through 
community-based technology and learning centers (CTLCs) (see 
Figure 6.7). The program focuses on community technology centers 
because they exist in nearly every country in the world as a location 
for people to access information. In the first year since the inception 
of Unlimited Potential, Microsoft awarded a total of $50 million in 
cash, software, and technical assistance to more than 150 nonprofit 
organizations in 45 countries. 

Narrowing the "digital divide" requires going beyond providing 
people with access to technology. The real difference is made when 
people are equipped with the knowledge and skills to put that tech- 
nology to use. Computers are amazing tools that can transform lives, 
businesses, and even entire economies — but only if people know 

Keys to Success 


how to use them. Our goal is to make computer literacy a reality for 
underserved communities worldwide. 

UP will provide funding to help CTLCs hire and train technol- 
ogy instructors, and will also make basic computing curriculum 
available to these centers. In later phases of the initiative, Microsoft 
will partner with others to establish a global support network deliv- 
ering technology curriculum, research, tools, and services to CTLCs 
worldwide. The company will also sponsor a global and regional 
awards program, to recognize effective and scalable information 
technology solutions that deliver social benefits. The awards are de- 
signed to encourage innovation and provide the funding necessary to 
help the best information technology solutions scale for broader use. 

UP grants are made through Microsoft's U.S. and international 
subsidiaries, working closely with local organizations to identify 
community-based centers where technology skills training is a pri- 
mary focus. Grant recipients span regions around the world, includ- 
ing Africa, Asia, the Caribbean, Central America, Europe, Latin 
America, the Mediterranean, the Middle East, Mexico, and the 
United States. 22 

The connection of this community investment initiative to mis- 
sion is more than coincidental. It is intentional. Microsoft's mission 
is "To enable people and businesses throughout the world to realize 
their full potential." The Unlimited Potential initiative is in com- 
plete alignment with this corporate purpose and provides a mecha- 
nism for us to deliver on it. 

Our current corporate advertising campaign reflects Microsoft's 
desires to "unleash the potential in every person, family, and busi- 
ness. We want to help you do the things you do every day — express 
your ideas, manage your finances, build your business — faster, easier, 
and better. At Microsoft, we see the world not as it is, but as it might 
someday become." The campaign slogan is "Your Potential. Our Pas- 
sion." This consistency is possible because we have made a corpo- 
rate-wide decision to align the work of our product teams; our 
communication and outreach efforts; and our community invest- 
ments around our company's mission. 

To support this integrated approach, several efforts were key: 

• Referencing the corporation's mission statement at the onset: The 
Unlimited Potential initiative is a natural evolution of our 


Corporate Philanthropy 

company's mission, and of its 20-year history of community 
outreach. As we developed Unlimited Potential, we made sure 
that the program continued to align with our efforts to help 
people and communities realize their full potential. 

• Working with the marketing department and the advertising and 
communication agencies responsible for external corporate com- 
munications: Microsoft's brand group provided significant 
counsel as we developed the Unlimited Potential name and 
visual identity, thus ensuring consistency with the corpo- 
rate brand. 

• Highlighting UP stories in external communications vehicles: 
We've seen incredible things happen as a result of our philan- 
thropic outreach. When technology and technology skills are 
made available to individuals and communities who previously 
lacked digital access, it transforms lives and creates amazing 
opportunities. Sharing these stories is a great way to demon- 
strate what our company is all about and the impact we hope 
to have through the power of technology. UP projects have 
been integrated into executive speeches, business presenta- 
tions, the corporate advertising campaign, our annual report, 
our external web site, and other communications vehicles. 

• Focusing on internal communications as well as external commu- 
nications: A company's brand isn't just communicated 
through advertising and public relations. Brand is also trans- 
mitted — perhaps most powerfully — through our people. We 
work hard to ensure our employees not only understand our 
community investment efforts but also have a chance to get 
involved. When they share their experiences and their own 
personal transformations, it's one of the most effective brand 
tools we have. 

Costco Wholesale 

Opened in 1976, Costco Wholesale is the world's first warehouse mem- 
bership club, and in early 2000 had more than 32 million members, 335 
warehouses, and nearly 80,000 employees worldwide. 23 Costco's strong 
corporate culture includes a belief in the importance of giving back to 
those who have contributed to its success and an interest in creating pos- 
itive social change. The following example of a philanthropic effort is 

Keys to Success 


shared by a Costco executive who offers recommendations to others en- 
gaged in similar community philanthropic efforts. 

Costco's community support concentrates on children and educa- 
tion. We believe education is a great equalizer and have worked over 
the years to improve the educational opportunities for children, 
ranging from elementary school age children through our Back to 
School Backpack program, to college age students through our 
scholarship program for underrepresented minority students. Re- 
cently, we expanded our efforts to include the education of children 
from birth to age five. 

We learned from recent brain research that education of chil- 
dren begins at birth and that the critical years in a child's develop- 
ment (zero to five) are the same years during which over 70 percent 
of children are placed in some type of child care away from home. 
Many child care centers and family child care providers are not able 
to fully promote the healthy development of children during these 
crucial years, and these years become, at times, years of missed op- 
portunities to educate our children when they need it most. In addi- 
tion, there is a severe lack of affordable quality child care. 

We also believe that the lack of quality and affordable child care 
needs to be addressed and corrected by the entire community, and 
we determined that a collaborative approach was needed among 
business, government, parents, teachers, academic institutions, and 
the community. No one group can do it alone. We also realized that 
this collaborative effort would be important in order to reduce costs, 
make child care more affordable, and increase quality. 

Costco partnered with Bellevue Community College (BCC) 
over four years to develop this collaborative effort, and together they 
built the Early Learning Family and Childcare Center on BCC's 
campus (see Figure 6.8). This effort included the design, develop- 
ment, and construction of the facility, fundraising through grants 
and donations from the private and public sectors, and the imple- 
mentation of a high-quality program for children ages three months 
to six years. 

Costco contributed $1.5 million to the project. We also con- 
tributed in-kind services and coordinated additional in-kind services 
from our general contractor, architect, legal counsel, and vendors. 
BCC provided funding and coordinated the fundraising campaign 


Corporate Philanthropy 

through its 501(c)(3) foundation, grant writing, and other means. 
As a result of our participation, Costco employees have access to 50 
percent of the available child care slots, at the same tuition rates. 

However, our primary reasons for participating in this project are 
to provide a model of affordable quality child care that hopefully will 
be replicated, to increase awareness of the importance of early learn- 
ing within the business community, and to increase parental in- 
volvement in early learning. 

Many communities across Washington state and the nation 
have inquired about the project. We've given tours and have spoken 
with various communities to share what we have learned. This pro- 
ject has been featured in various articles, and Costco's CEO and oth- 
ers have spoken to business groups around Washington, promoting 
the importance of early learning and the collaborative model. 
Costco has received recognition from the Bellevue Chamber of 

Keys to Success 


Commerce as a recipient of the 2002 Eastside Business Award for 
Corporate Citizenship and the Leadership Award from the Founda- 
tion for Early Learning. Finally, BCC has spoken about the project 
around the country and both the architect and general contractor 
have received recognition for their involvement in this community 
service endeavor. While we appreciate the recognition we have re- 
ceived, what matters most to us is that we hope this will inspire 
other businesses to champion early learning in their communities. 

When choosing among causes to support, focuses for efforts, and 
decisions regarding partnerships, we strongly recommend the follow- 
ing principles: 

• Don't try to be all things to all causes. Focus on one or two areas. 

• Find a way to make a concrete difference. We believe that cam- 
paigns that do the most good for the community in which the 
company does business will eventually do the most good for 
the company. 

• Collaboration is key. As a result of collaboration, the actual 
cost of the building was below market value and the construc- 
tion cost was fully funded, leaving the building debt-free. This 
substantially reduced operating expenses, allowing more af- 
fordable tuition levels and higher wages for caregivers. 

• Recognize that collaboration takes patience, perseverance, and ex- 
ecutive support from the collaborators. Costco and BCC com- 
mitted senior level people to work on the project, and all 
collaborating partners did the same. These people had the au- 
thority to make decisions on the spot, and the expertise to 
solve problems creatively and react immediately. 


Recreational Equipment Inc. (REI) is a renowned supplier of specialty 
outdoor gear, currently operating more than 70 stores in 24 states. Retail 
stores include a variety of facilities for testing equipment, including bike 
test trails, climbing pinnacles, and camp stove demonstration tables. REI 
stores also provide opportunities to learn about the outdoors and mus- 
cled-powered sports through frequent in-store clinics and REI-sponsored 
events, and through association with local outdoor organizations. For 
seven consecutive years, REI has been recognized by Fortune magazine's 


Corporate Philanthropy 

"Best Companies Special Report" as one of the "100 Best Companies to 
Work for in America." The following summary of REI's Grants Program, 
provided by REI's corporate giving manager, reflects their cultural focus 
on the great outdoors as well as on their employees, who are recognized 
throughout the outdoor industry for their product knowledge and exper- 
tise. (See Figure 6.9.) 

REI's Grants Program is unique as it calls on our employees to nomi- 
nate potential grant recipients. Although a budget and plan has final 
approval by the board of directors and REI's leadership team, em- 
ployees are solicited to nominate nonprofit organizations with which 
they volunteer who share our values and funding priorities. Organi- 
zations that have been nominated by an employee are sent grant ap- 
plications and, when funding decisions are made, retail employees 
actually award the grants to the organization they nominated. 

Grants are funded by our public affairs department at about $1.8 
million per year and focus in two areas. Conservation projects are in- 
tended to protect lands and waterways, make these resources accessi- 
ble to more people who enjoy the outdoors, and better utilize and 
preserve our natural resources for recreation (e.g., a grant to promote 
dialogue between user groups and policy makers). Outdoor recre- 
ational project grants support increased access to outdoor activities 

Figure 6.9 REI's giving program reflects its focus on the outdoors and 
relies on employee nominations for grant recipients. (Reprinted 
courtesy of REI.) 

Keys to Success 


(e.g., one that provides sleeping bags and tents for students while at- 
tending an outdoor adventure education program), encourage in- 
volvement in muscle-powered recreation, and promote safe 
participation in outdoor muscle-powered recreation and proper care 
for outdoor resources. 

Program success is evaluated on a variety of metrics, including 
measuring the number of hours of volunteer service, number of miles 
of trail work completed, number of children participating in an out- 
door program, number of people benefiting from donated gear, or 
number of participants in a program. We believe successful projects 
then support our own long-term business goals by preparing our fu- 
ture's environmental stewards, promoting outdoor activities, and 
preserving places for recreation. 

Surveys have indicated that our grants program has been a 
source of pride and loyalty for our employees. We believe it has 
strengthened our brand with customers, nurtured an internal culture 
of stewardship, and created partnerships with external organizations 
that have added value to the campaigns. 

We believe in these keys to a successful philanthropic program: 

• Actively engage employees at all levels of the company, particularly 
those at retail stores. By directing our corporate dollars to pro- 
jects in which our employees are personally involved, we rein- 
force our commitment to stewardship and volunteerism as 
well as support meaningful projects at the grassroots level that 
are relevant, strategic, and unique. Although other models for 
grant making may be simpler and cleaner, we believe involv- 
ing our employees in the program makes it more relevant, 
strong, and impactful. 

• Secure the support of leadership. REI has a long history of giving 
back to the community and the value held within the com- 
pany. Having the support of our senior leadership team and 
the board of directors insures that our program and commit- 
ment to stewardship remain bold, consistent, and alive. 

• Communicate results. We repeatedly communicate the results 
of our giving efforts. This is done online, through our em- 
ployee newsletter, in our stores, in our annual dividend 
packet, in catalogues and mailers, and through speaking en- 
gagements of REI leaders. 


Corporate Philanthropy 

• Celebrate success. Recognize individuals and employee groups 
for their volunteerism. Participate in nonprofit partners' 
events and activities supporting environmental stewardship. 
Send personalized notes, e-mails, and articles about the differ- 
ence we are making in the community through the donation 
of time, money, and products. 


In reality, philanthropic activities are the norm for most corporations 
and are always a consideration when the corporation has citizenship or 
philanthropic goals. They should also be considered when community 
organizations and agencies would benefit from excess or idle corporate 
resources. Emphasis is placed in this chapter on developing philan- 
thropic initiatives that are strategic, having the most impact on the so- 
cial cause as well as providing the maximum benefits for the corporation. 


Major decisions related to philanthropic activities will include selecting 
a cause to support, choosing a nonprofit charity or other recipient for 
contributions, determining levels and types of contributions, and devel- 
oping communication and evaluation plans. Guidelines for each include 
the following: 

• Selecting a cause to support should ideally begin by referring to 
already established philanthropic priorities, ones that have been 
chosen by the company as areas of focus based on a variety of fac- 
tors including business goals, employee passions, and customer 
concerns. This will help ensure management support for the ef- 
fort, as well as the possibility that contributions will be con- 
nected to causes currently being supported by other types of 
social initiatives. The chances for making a real impact in a par- 
ticular cause area are then increased. Having these areas of focus 
will also help guide managers at remote or local levels, increasing 
the likelihood that corporate giving will be integrated through- 
out its various markets. 

Developing Philanthropic Endeavors 


When choosing a nonprofit partner, managers might first look at 
existing partnerships and build on ones where there is a good 
working relationship, a history of good fiscal management, and a 
track record of collaboration. Other criteria that might be used to 
select a partner include looking for one where there is the possi- 
bility of making a meaningful contribution by providing nonmon- 
etary resources such as corporate products, use of distribution 
channels, and technical expertise. 

Determining levels of contributions ideally should also begin with 
a reference to established corporate guidelines for giving, ones 
that may specify a percentage of pretax profits, a percentage that 
varies at different profitability levels, or a fixed dollar amount, or 
may even be based on some other index such as the number of 
corporate employees. 

Developing a communication plan is an often-overlooked step for 
philanthropic initiatives. For some it is a deliberate move. Man- 
agers are encouraged, however, to develop an internal communi- 
cation plan that informs employees regarding giving programs and 
levels of contributions. Plans for celebration should also be con- 
sidered, especially when concrete results can be reported and 
shared. In terms of external communications, most would agree 
that at a minimum, giving programs should be described in corpo- 
rate reports and on web sites, as many consumers, investors, and 
suppliers may in fact be looking for them and be surprised (or con- 
cerned) when they are not found. 

Though it is often difficult to do so, managers are encouraged to 
establish tracking and measurement tools that will account for 
total cash contributions, estimate the value of any in-kind ser- 
vices, and, ideally, provide information on outcomes and im- 
pacts for the social cause. There is some evidence that progress 
is being made to support evaluation strategies. For example, in 
the Spring 2003 issue of New Century Philanthropy, a publica- 
tion of the Committee to Encourage Corporate Philanthropy, 
Charles Moore, executive director of the committee, said that 
initiatives are in the works to establish "industry-led guidelines 
to account and report cash and value-in-kind contributions 
across the entire corporation, and enable comparable internal 
and external benchmarking." 24 


Corporate Philanthropy 


The current range of options for philanthropic giving is broad, breaking 
from traditions in the past that focused on cash donations to more cre- 
ative giving strategies including donating products and services, provid- 
ing technical expertise, and allowing the use of facilities, distribution 
channels, and (idle) equipment. 

Major strengths for this initiative are building corporate reputation 
and goodwill; attracting and retaining a motivated workforce; having an 
impact on societal issues, especially in local communities; and leveraging 
current corporate social initiatives. Of late, experts are challenging cor- 
porations to look also at the potential for philanthropic initiatives that 
will actually increase productivity, expand markets, and ensure a strong 
future workforce. The greatest concerns expressed by many were the 
challenges associated with evaluating and choosing a strong cause part- 
ner, dealing with shareholder concerns for issues that have been selected, 
achieving (tactful) visibility for the corporation for its efforts, and track- 
ing and measuring impact and outcomes, even just determining (quanti- 
fying) levels of giving. 

Strongest recommendations to address these downsides include 
choosing social issues that have a connection to the corporation's mis- 
sion, involving other departments in selecting causes and giving levels. 
When developing programs, engage employees, secure leadership sup- 
port, and develop a communications plan, even if it is just an internally 
focused one. 



Community Volunteering: 
Employees Donating 
Their Time and Talents 

At Timberland, we're about more than the rugged boots we've made for 
30 years. We believe that companies have the power and the responsibil- 
ity to effect positive and lasting change in the world. When you layer in 
community organizations and individuals who share this passion, the vi- 
sion for what we can achieve together is limitless.' 

ommunity volunteering is an initiative in which the corporation 

supports and encourages employees, retail partners, and/or fran- 

V«_^ chise members to volunteer their time to support local community 
organizations and causes. Volunteer efforts may include employees vol- 
unteering their expertise, talents, ideas, and/or physical labor. Corporate 
support may involve providing paid time off from work, matching ser- 
vices to help employees find opportunities of interest, recognition for 
service, and organizing teams to support specific causes the corporation 
has targeted. 

Distinguishing community volunteering from other initiatives is not 

— Jeffrey Swartz, president and CEO, 
The Timberland Company 



Community Volunteering 

difficult, as it alone involves employees of a corporation personally volun- 
teering at local organizations (e.g., Boys 6k Girls Clubs) and for local 
cause efforts (e.g., picking up litter on roadways). Volunteering in the 
community is not a new corporate initiative. What is new and notewor- 
thy, however, is an apparent increase in the integration of employee vol- 
unteer efforts into existing corporate social initiatives and even 
connecting the volunteer efforts to business goals. Once more, a strategic 
approach appears to be the norm, where employees are often encouraged 
to volunteer for causes that are currently supported by other corporate so- 
cial initiatives, frequently connected to core business values and goals. 
IBM, for example, has had a long-standing commitment to education 
through an initiative called "Reinventing Education" and supports em- 
ployees in becoming mentors to school youth; and FannieMae employees 
are encouraged to support the foundation's "Help the Homeless" program. 

Volunteering in the community, and corporate support to do this, is 
viewed by many (including executives sharing their stories in this chapter) 
as one of the most genuine and satisfying of all forms of corporate social in- 
volvement. In his book Revolution of the Heart, Bill Shore shares perspec- 
tives and insights that may be contributing to this revival and encourages 
corporations, as well as individuals, to "contribute through their unique 
skills and creative abilities." He says that by doing this, "they are giving the 
one thing that is most genuinely theirs and that no one can take away." 2 It 
means "teaching nutrition and food budgeting to young mothers if you're a 
chef, tutoring math if you are an accountant, coaching if you are an athlete, 
examining children if you are a doctor, building homes if you are a carpen- 
ter or a builder." 3 He writes about "the yearning people have to be con- 
nected both to something special inside themselves and, at the same time, 
to something larger than themselves and their own self-interest." 4 


Corporate support for employee volunteering ranges from programs that 
simply encourage their employees to give back to their communities to 
those representing a significant financial investment and display of 
recognition and reward. Examples representing types of support include 
the following: 

• Promoting the ethic through corporate communications that en- 
courage employees to volunteer in their community and that may 

Typical Programs 


provide information on resources to access in order to explore vol- 
unteer opportunities. 

• Suggesting specific causes and charities that the employee might 
want to consider and providing detailed information on how to 
get involved, often with causes and charities supported by other 
current social initiatives. 

• Organizing volunteer teams for a specific cause or event, such as a 
United Way "Day of Caring" event, where, for example, employ- 
ees paint the interior of a child care facility for homeless children. 

• Helping employees find opportunities through on-site coordina- 
tors, web site listings, or, in come cases, through sophisticated 
software programs that match specific employee interests and cri- 
teria with current community needs. 

• Providing paid time off during the year to do volunteer work, 
with typical benefits ranging from offering two to five days of 
annual paid leave to do volunteer work on company time, to 
more vigorous programs that provide opportunities for an em- 
ployee to spend a year on behalf of the company working in a 
developing country. 

• Awarding cash grants to charities where employees spend time 
volunteering; grant amounts are then often based on numbers of 
hours reported by employees. 

• Recognizing exemplary employee volunteers through gestures 
such as mentions in internal newsletters, awards of service pins or 
plaques, and special presentations at department or annual com- 
pany meetings. 

Types of projects that employees volunteer for range from those that 
contribute to a local community to ones that improve health and safety 
for individuals, to those that protect the environment. 

Community projects, perhaps the most common, include efforts such 
as building homes, collecting food for food banks, answering phones for 
public radio pledge campaigns, organizing teams for walk-a-thons, clean- 
ing parks, reading to kids, mentoring youth at risk, volunteering in the 
classroom, visiting children in hospitals, spending time with seniors in 
nursing homes, teaching computer skills, befriending people in a home- 
less shelter, handing out meals at a soup kitchen, building playhouses for 
orphans, and staffing an adopt-a-pet booth. 


Community Volunteering 

Health and safety -related projects where employees volunteer their 
time include such activities as screening kids for dental problems, 
leading youth physical activity programs, conducting a car seat safety 
check, handing out educational brochures on HIV/AIDS, driving se- 
niors to get an annual flu shot, and training children on how to use 

Environmental volunteering might involve litter pickup, tree planting 
in areas destroyed by fires, seed propagation for highway beautification, 
salmon habitat protection, plant identification, weed control, removing 
alien plants, wetland rehabilitation, cleaning polluted waterways, and 
clearing storm drains of debris. 

Table 7.1 highlights examples of programs for companies featured in 
this chapter. 


According to executives contributing to cases and examples in this 
book, many of the benefits for this initiative reflect its unique capacity 
to build strong and genuine relationships with local communities and 
to attract and maintain satisfied and motivated employees. This may 
also be one of the best initiatives for augmenting and leveraging cur- 
rent involvement and investments in social initiatives. As with sev- 
eral of the other initiatives, additional potential benefits have been 
experienced as well, including contributions to business goals, en- 
hancing corporate image, and providing opportunities to showcase 
products and services. 

Building Qenuine Relationships in the Community 

Recipients of volunteer efforts recognize the spirit of commitment that a 
company has when volunteers show up personally to help their organiza- 
tion's cause. The relationship and community building opportunities for 
these sincere contributions are perhaps strongest for this corporate social 
initiative. It seems that anyone can write out a check or provide space 
for cause promotional materials in retail stores. But it takes real commit- 
ment and caring to give your employees time away from the production 
lines or for people who have a full-time job to give some of their free 
time to support a cause. 

Table 7.1 Examples of Corporate Community Volunteer Activities 


Example of a Cause Supported 

Examples of Activities 

Examples of Support 

Ford Motor Company 

Affordable housing 

Participating in building homes for 
Habitat for Humanity Detroit 

Organizing efforts and 
employee recognition 


Global access to technology 

Working in underserved 

communities including rural India 

Placing employees in these 
locations for a period of time 


United Way, National Safe Kids 
Campaign, and American 
Red Cross 

Participating in United Way 
"Day of Caring" 

Time off from work to 
participate in "Day of 

Fannie Mae 

Making home ownership more 

Participating in the foundation's 
"Help the Homeless" program 

One-on-one match program 
Paid leave 


Environmental protection 

Weed and litter removal in coastal 
regions; studying waterbirds 

Organizing activities and 
funding employees to 
participate in specific 

AT&T Wireless 

Red Cross and other charities 
selected by employees 

Teams volunteer for a specific 
community group 

Awarding grants to charities 
where employees volunteer 


Local community 

Participation in high impact 
community service events 

Up to 40 hours of paid 

community service time per 
calendar year 


Mentoring school- age youth 

One -on-one mentoring of students 
by IBM volunteer employees 

Providing software that 
supports secure online 

Levi Strauss & Co. 


Volunteering in food delivery 

programs, outreach, and education 

Engaging employees 

throughout the company 


Community Volunteering 

Example: Ford Motor Company 

Henry Ford was said to have had a strong sense of community 
and demonstrated this commitment early on through such ef- 
forts as helping to build subdivisions in Detroit to provide afford- 
able housing for thousands of workers, and establishing Detroit's 
first large general hospital. Today there are thriving examples 
that this culture for community goodwill is still alive, offering 
salaried employees 16 hours of paid community service a year. 5 

Ford Motor Company has been a partner and supporter for Habi- 
tat for Humanity, especially in Detroit, for many years. Over 1,000 
Ford employees, for example, volunteered their time between the 
year 2000 and 2002 to help build Habitat homes in Detroit, pro- 
viding families in need with a safe, affordable place to live. Appre- 
ciation for Ford's volunteer efforts was clear in a statement from 
the executive director for Habitat for Humanity Detroit: "Ford has 
been one of the reasons that Habitat for Humanity Detroit has 
been successful in building homes and revitalizing neighborhoods. 
It's a great opportunity for Ford employees to spend time with 
each other outside of work while working for a good cause and giv- 
ing back to the Detroit community." 6 The company also has a 
philanthropic initiative with Habitat for Humanity Detroit, with 
a commitment of $125,000 for the organization made in 2000. 7 

And for the 10th consecutive year, Ford participated in an ini- 
tiative that uses greeting cards to support abandoned and ne- 
glected children (see Figure 7.1). This unique program involved 
company employees collecting old and used greeting cards that 
are then sent to children at St. Judes Ranch for Children in 
Nevada, who then use them to make new cards that are sold to 
support the nonprofit. The children at the ranch earn money as 
well for every new card they make. In February 2003, 350,000 
cards (two tons) were sent to St. Judes kids. A Ford company ex- 
ecutive commended the effort: "Our six dozen Ford Motor Com- 
pany volunteers should be proud. This was another successful 
year and their effort not only helps Mother Nature with tons of 
material diverted from the waste stream but also helps deserving 
young people from St. Judes as well." 8 

Potential Benefits 


Figure 7.1 Ford volunteers collected used and old greeting cards for 
children at St. Jude's Ranch, who resold them to earn money. 
(Reprinted courtesy of Ford and St. Jude's Ranch.) 

Contributing to Business Qoals 

Many companies like Hewlett-Packard believe corporate social initiatives 
can be both a good business investment as well as a social one. They be- 
lieve that by assisting communities in realizing the potential that tech- 
nology can have on economic development, for example, they can also 
build new markets for the company. In the following example, Hewlett- 
Packard's chairman and CEO, Carly Fiorina, presents perspectives that 


Community Volunteering 

counter many of those presented in Milton Friedman's seminal work 33 
years ago entitled The Social Responsibility of Business Is to Increase Its Prof- 
its. He argued that business leaders had "no responsibilities other than to 
maximize profits for the shareholders." To this Ms. Fiorina commented in 
a recent keynote address, described in the next example, "The idea that 
companies have no responsibility to the communities in which they oper- 
ate, that in other words, we operate in a vacuum, or the idea that our ac- 
tions have no consequences on the world around us is short-sighted at 
best, and it is certainly not sustainable for very long." 9 

Example: Hewlett-Packard 

Hewlett-Packard (HP) has a vision of a future where everyone in 
the world has access to the social, educational, and economic 
opportunities offered in this digital age. In 2002 alone, HP in- 
vested more than $62 million in resources worldwide to forward 
this vision. Part of this investment came in the form of employee 
volunteer efforts in underserved communities. 10 

Carly Fiorina, chairman and CEO of HP, articulated her views 
on corporate responsibility in a keynote address delivered at 
the Business for Social Responsibility Annual Conference in 
November of 2003. She said that they have found, when they 
get involved in communities and "back it with real re- 
sources — not just money and time, but more importantly, HP 
people and products — we become a catalyst for change be- 
cause governments and NGOs and community leaders and 
even other companies are then more willing to make a com- 
mitment themselves." 11 

She cited an inspiring example of where an investment of people 
on the ground, working on community development projects, is 
also expected to bring benefits to the company. A program 
called "i-community" places employees for up to three years to 
work side-by-side with citizens in underserved communities, 
helping them achieve their goals by contributing management 
expertise and training on use of technology (see Figure 7.2). In 
one rural, impoverished community in India, when employees 
observed that electricity was unreliable (to say the least), a new 
product idea was conceived: a solar-powered printer and a solar- 

Potential Benefits 


powered digital camera. The idea then became a business for the 
community — a solar-powered digital photography studio. In In- 
dia every citizen is required to have a national ID card with their 
photograph on it, and people in rural communities needed to 
travel into a city to have their photograph taken. The photogra- 
phy studio became a new venture for several women entrepre- 
neurs who traveled from village to village creating identity cards. 
"What happened in that process?" asked Carly. "We've devel- 
oped a new product; we've helped create new businesses that are 
sustainable; and we've also created partners and customers for 
life. Yes, it's a small start, but imagine the potential of something 
like digital photography in a market like India." 12 

The company's appreciation and recognition for employees 
was apparent in one of her final comments. "I guess the last 
thing I would say is that the people of HP represent all that is 
good and true about this company — including the power of 
our aspiration and the power of our contribution. And when 

Figure 7.2 HP's model for its "i-community" approach underscores a 
belief that business investment in association with employee 
volunteerism can lead to a positive social impact through the 
development of new technology and creation of new markets. 
(Courtesy, Emerging Market Solutions, Hewlett-Packard Development 
Company, L.P) 


Community Volunteering 

you have 140,000 employees, they also, by their own personal ex- 
ample, can have a big impact, and I know they do." 13 

Increasing Employee Satisfaction and Motivation 

As research highlighted in Chapter 1 indicated, a company's reputation 
for community involvement, including support for employees to volun- 
teer for causes, can influence their morale, as well as their choices about 
where they work. After 9/11, for example, a Cone/Roper's study indicated 
that 76 percent of respondents said a company's commitment to causes 
was important when deciding where to work. 14 And in their 2002 Citi- 
zenship Study with a national cross section of 1,040 adults, 80 percent of 
respondents say they would be likely to refuse to work at a company if 
they were to find out about negative corporate citizenship practices. 15 

Example: FedEx 

Every year, thousands of FedEx employees volunteer their talent, 
resources and time (about 200,000 hours' worth) to support 
charitable organizations with which FedEx has an established 
strategic relationship, including United Way, March of Dimes, 
National SAFE KIDS Campaign, and American Red Cross. 

Of special interest in this example is the impact that this in- 
volvement has on employee volunteers (see Figure 7.3). FedEx 
features their inspiring personal stories on their web site, with a 
few highlighted below: 16 

• A manager in Buffalo was moved to see the difference his 
company made on their United Way "Day of Caring" event 
in an impoverished community in his area. "When word 
got back to officials of the City of Buffalo about FedEx 
Trade Networks descending on the area with an army of 
volunteers to clean it up, they sent street-cleaning trucks 
and a dump truck to help. Generally, the city neglects this 
impoverished area; the trucks were there as a result of 
FedEx involvement. We truly made a huge impact on that 
area of the neighborhood that day. It was great to see." 

• A senior service agent for FedEx Express who participated 
as a "Loaned Executive" in the United Way campaign is 

Potential Benefits 


passionate about her experience and promotes volun- 
teerism to other employees as well. "It's about getting them 
in touch with something they didn't know existed. It 
changes you, there is no way around that; no way to ever 
say I'll walk away being the same person I was walking in 
here. There's just not." 
• An operations manager in Spokane, Washington, volunteers 
to support the local "SAFE KIDS Walk This Way" program. 
She has encouraged more than 25 fellow employees to do 
the same. "In some small way, if we can help with the traffic 
issues it's worth it. If we can save one child, it's worth it." 

In recognition of their 2002 campaign, United Way of America 
honored FedEx with the Spirit of America Award, its highest 
tribute for corporate community involvement, recognizing the 
company's corporate giving, in -kind service, and volunteerism. 17 

Figure 7.3 FedEx employees support a "SAFE KIDS Walk This Way" 
program, an initiative of the National Safe Kids Campaign. (© 1995-2004 
FedEx. All Rights Reserved.) (Reprinted courtesy of FedEx.) 


Community Volunteering 


WAVE 9 ! 

Figure 7.4 Logo for Fannie Mae Foundation's "We Are Volunteer 
Employees" program. (Reprinted by permission of the Fannie 
Mae Foundation.) 

Supporting Other Corporate Initiatives 

Supporting employees to volunteer for causes that are a strategic focus 
for the organization can leverage the contributions already being made 
through other initiatives such as cause promotions and philanthropy. In 
the following example, a corporation has had a long-standing philan- 
thropic focus for contributing to affordable housing and home owner- 
ship. It makes real the concept and synergy created when yet one more 
initiative is integrated into the current strategic mix. 

Example: Fannie Mae 

In 1990, the Fannie Mae Foundation established a formal pro- 
gram to support volunteer efforts of employees of both Fannie 
Mae and the Fannie Mae Foundation. The program, called 
WAVE (We Are Volunteer Employees), was developed to assist 
employees in finding meaningful volunteer opportunities, pro- 
vide support for participation in volunteer activities, and recog- 
nize employees for their accomplishments (see Figure 7.4). In 
2002, more than 1,400 employee volunteers contributed more 
than 41,000 hours of service in the communities where they 
work and live. 18 

Support includes a one-on-one match program that helps em- 
ployees find volunteer opportunities in the community that ap- 
peal most to them. A paid release time program offers 

Potential Benefits 


employees 10 hours of paid leave per month to participate in 
these activities. Teamwork is built through community projects 
that involve employees working together, and a formalized 
recognition programs thanks employees for their efforts through 
gifts and awards. 19 

Many volunteer efforts support the foundation's commitment 
to improving affordable housing and home ownership opportu- 
nities, especially for low-income and minority families. One 
program, called "Help the Homeless," started out as a relatively 
modest, employee-driven walk in a local park to raise money 
for nonprofit organizations working with local homeless citi- 
zens. "The year was 1988. Fannie Mae employees, walking to 
and from their office in an affluent Washington, D.C., neigh- 
borhood, encountered a distressing sight. Increasing numbers 
of homeless men and women walked the streets. They asked for 
money; they looked for shelter. Often, homeless children 
trailed behind a parent. This new reality hit hard — especially 
for people who devoted their professional lives to expanding 
home ownership. Concern soon became action. With the 
blessing of then-Fannie Mae Chairman David O. Maxwell, 
Fannie Mae employees organized a charity walk to raise money 
for the overwhelmed nonprofit organizations working with lo- 
cal homeless citizens." 20 

In their first year, walkers raised $90,000 for organizations serv- 
ing the homeless. To capitalize on the momentum, Fannie Mae 
employees then contacted local businesses to enlist corporate 
support for future walks. For 16 consecutive years, the Fannie 
Mae Foundation has engaged people in the Washington metro- 
politan area in this grassroots initiative. By 2003, the event had 
grown to involve more than 100,000 children and adult partici- 
pants and generated $6.5 million. The total raised by the Fannie 
Mae Foundation's "Help the Homeless" program now stands at 
more than $40 million. 21 

In 1995, the WAVE program was recognized by the Points of 
Light Foundation with an Award for Excellence in Corporate 
Community Service. 22 

188 Community Volunteering 

Figure 7.5 Logo for a joint effort between Conservation Volunteers 
Australia and Shell Australia to protect Australia's coastal regions. 
(Reprinted courtesy of Shell Coastal Volunteers.) 

Enhancing Corporate Image 

Many companies are discovering that strong reputations for corporate 
social responsibility can be enhanced, even won, through the generous 
actions of employees whose volunteer efforts bring them face-to-face 
with cause partners, citizens, and neighbors in need. Among all the cor- 
porate social initiatives, perhaps this one has the most ability to generate 
feelings of goodwill among employees and members of the community at 
the same time. 

Example: Shell Australia 

Perhaps not surprisingly, volunteer projects that contribute to the 
environment appear to be increasingly popular for companies hav- 
ing a direct impact on the natural environment, ones such as Shell 
Australia. Although "Shell Volunteers," a program that began in 
Australia in 1990, encourages employees to provide their time, en- 
ergy, and skills to areas that interest them most (e.g., taking young 
children on outings, planting native trees and grasses, collecting 
gifts), a coordinator of the program notes that involvement in en- 
vironmental projects has increased. And this focus is good for the 
company as well, as she commented: "Shell's involvement in vol- 
unteering, while largely generated by the employees, is in line with 
the company's commitment to sustainable development." 23 

A particular program called "Shell Coastal Volunteers" is a 
joint effort between Conservation Volunteers Australia and 
Shell Australia to help confront serious threats to Australia's 
coastal regions including pollution, marine biodiversity, and 
habitat degradation (see Figure 7.5). Volunteers work with 
community groups, government agencies, local governments, 
and other land managers to provide a range of practical conser- 

Potential Benefits 


vation activities including weed and litter removal. In the past 
three years, there were more than 13,000 volunteer days, 80 
kilometers of beach cleaned, more than 490,000 square miles of 
area revegetated, and 220 kilograms of seed collected. The plan, 
as reported in 2003, will include undertaking 100 urban and re- 
gional projects per year and contributing more than $2 million 
worth of assistance. 24 

Shell also has a partnership with Earth watch Australia and funds 
a number of its employees to participate in environmental re- 
search projects, such as studying waterbirds. 

Volunteer efforts provide a powerful visible symbol of commit- 
ment, as reflected in a statement that Shell Australia's chairman 
and CEO wrote in Business/Higher Education Round Table News 
in November 2000: "Nothing is likely to galvanize community 
protest and action against a company more than if it appears to 
hold 'double-standards.' . . . You cannot say that you take corpo- 
rate social responsibility seriously and then not engage effec- 
tively with the communities in which you operate." 25 

Providing Opportunities to Showcase Products and Services 

Philanthropic initiatives that include donations of products and services 
can be enhanced through volunteer efforts that provide additional op- 
portunities to associate products with corporate community goodwill. 
This was noted in the example in Chapter 3 where Lysol volunteers 
showed up at Great American Cleanup events with supplies of their 
products, increasing in some cases awareness of the range of product in 
their lineup. In the following example, we see similar opportunities for 
AT&T Wireless through their community volunteer efforts. 

Example: AT&T Wireless 

No doubt the vision statement for AT&T Wireless has been 
guiding their business as well corporate social responsibility ef- 
forts: "We envision a world where wireless seamlessly and simply 
connects us to the people, information, and things we care about 
most, enabling us to be simultaneously connected and free." 26 


Community Volunteering 

In a press release in 2002, the American Red Cross announced 
an expanded relationship with AT&T Wireless, a longtime 
supporter of the organization's disaster relief efforts. Enhanced 
activities included technical assistance, corporate volun- 
teerism, and outreach to over 1 ,000 Red Cross chapters around 
the nation. Included in this expansion was a donation of 
phones to chapters across the country and a commitment of 
AT&T Wireless employee volunteer service to local commu- 
nity groups, among them the Red Cross. A senior vice presi- 
dent for the American Red Cross described the benefit of the 
contribution: "The AT&T Wireless relationship enables Red 
Cross workers to communicate with each other during times of 
disaster, ensuring that families can be reconnected with each 
other, for example. We appreciate the services that AT&T 
Wireless provides to our communities and we are proud that 
they are committed to training their own employees in lifesav- 
ing CPR and first aid skills." 27 

The company launched a new program, "VolunteerConnec- 
tion," in November, 2003, to encourage employee volun- 
teerism by awarding grants to nonprofit organizations where 
employees invest their volunteer time (see logo in Figure 7.6). 
VolunteerConnection operates in conjunction with Volun- 
teerMatch, an ongoing program that links employees to non- 
profit groups in need of support and tracks employee volunteer 
hours. VolunteerMatch maintains a nationwide database that 
enables employees to log on to their company's intranet, enter 
their zipcode and volunteer interests, and a search produces a 
listing of available opportunities in their community. Employ- 
ees can then link to the opportunity they are interested in 


Perhaps unique benefits, as just described, bring unique concerns as well. 
Concerns with types and amounts of corporate support for employee vol- 

Potential Concerns 


Figure 7.6 Logo for 2003 AT&T Wireless community 
volunteer programs. (Reprinted courtesy of AT&T Wireless.) 

unteering are real and expressed frequently with challenges and ques- 
tions such as the following: 

• This can get expensive. If, for example, a company with 300,000 
employees offers 24 hours of paid time off per year for volunteer- 
ing, and 50 percent of employees participate, the company is do- 
nating 3.6 million hours of potential productivity. It may be a 
complex exercise to evaluate this against options for giving grants 
and direct cash contributions, and it may look riskier than just en- 
couraging volunteer efforts on the employees' own time. 

• With so many employees, efforts may get spread over so many issues 
that we don't really make a social impact. This may be of special con- 
cern, for example, in corporations that encourage employees to 
volunteer in the community but do not offer organized programs 
or matching services that tend to create more clusters of volun- 
teers for specific causes. 

• Similarly, when efforts among employees are dispersed throughout the 
market, even the globe, how do we realize business benefits for the com' 
pany as well 1 . If opportunities for economic as well as social gain 
from philanthropic initiatives are real, how do we coordinate 
widespread and diverse efforts so that they are visible and con- 
nected with the company and our brand? 

• Being able to track efforts and outcomes for this initiative can be the 
most difficult of all. This, once more, can be especially true for 
global companies with volunteers in diverse markets, and espe- 
cially a concern when tracking and reporting systems are not cen- 
tralized and automated. 


Community Volunteering 

• It is particularly tough with this initiative to find the balance between 
publicizing our efforts and flaunting them. Perhaps there is something 
unique about the personal nature of volunteer efforts that makes 
communications regarding contributions more uncomfortable 
than for other kinds of initiatives. This then dampens enthusiasm, 
perhaps even investments, when a company wants this effort to 
help build the brand or enhance corporate reputation as well. 


Themes for keys to successful corporate volunteer initiatives are familiar. 
Overall, executives and managers sharing their recommendations tend 
to stress developing volunteer programs that match real social, eco- 
nomic, and environmental issues with the passion of employees and busi- 
ness needs of the company. They highlight advantages of also 
connecting volunteer efforts with the company's broader corporate citi- 
zenship strategy and to other current corporate social initiatives, such as 
cause promotions and philanthropic efforts. They stress the need to get 
management support up-front for long-term commitments and to choose 
strong community partners. They seem to agree that employees should 
be supported and recognized for their efforts and that tracking and quan- 
tifying impact is ideal. And they disagree somewhat on if, how, and when 
these efforts should be made known and publicized. The common ground 
seems to be that the best visibility is when the messengers are recipients 
of volunteer efforts sharing the difference that was made, or are the em- 
ployees themselves telling personal stories of inspiration and satisfaction 
with their experiences. 

In the following cases illustrating select application of these themes, 
executives from Timberland, IBM, and Levi Strauss & Co. share specific 
examples of corporate support for community volunteering and offer 
their perspectives on keys to success and principles to guide decision 


For every year since the list began, Timberland has been named one of 
Fortune magazine's "Best Companies to Work For." This award is one of 
many the company has received, in part, due to the unique employee 

Keys to Success 


benefits offered through a bold program to support employee and citizen 
volunteering. A corporate contributions executive at Timberland shares 
the program's background, as well as the company's challenges and rec- 
ommended guidelines for developing a winning program. 

The "Path of Service™" program began with a simple request in 
1989. A small program called City Year needed 50 pairs of boots for 
participants in its "urban Peace Corps." Timberland donated the 
boots, and a relationship was born. Instead of a thank you note, City 
Year gave Timberland a service day for employees to serve alongside 
corps members in the community. The day was so meaningful, and 
the implications were so clear. We realized a similar experience 
could have an enormous effect on all Timberland employees. The 
Path of Service employee volunteer program was born, a program 
that gives full-time employees 40 hours of paid community service 
time per year; part-time employees get 16 hours per year. 

Path of Service (POS) is the cornerstone of Timberland's com- 
munity investment as our employees have contributed over 200,000 
total hours of service around the world. That commitment has 
proudly benefited over 200 community organizations in 13 coun- 
tries, 26 states, and 73 cities. Departments and cross-functional 
teams utilize their service hours to build team and morale, improve 
communication skills, and discover unique and hidden assets of col- 
leagues. Individuals utilize their hours to develop a skill, find motiva- 
tion, and spend valuable time in the community (see Figure 7.7). 
Nearly 95 percent of our employees use their POS benefit, and an 
overwhelming majority cite it as one of their top two Timberland 

Most recently, we have launched an initiative called the "Com- 
munity Builders Tour," which is a mobile service caravan visiting se- 
lect markets. In the pilot phase of this program we are partnering 
with select retailers to engage consumers, employees, and civic lead- 
ers in high-impact community service events tailored to the host 
community's needs. Rather than just telling consumers what we do, 
we seek to engage them in our brand experience. 

We believe this program is a means to strengthen our relationships 
with our shareholders, customers, employees, and communities, and 
provides an opportunity for our employees to make their difference in 
the communities in which they live and work. In annual surveys, our 


Community Volunteering 

Figure 7.7 Timberland offers full-time employees 40 hours of paid 
community service time each year. (Photo courtesy of John 

Keys to Success 


employees rate POS and other community initiatives as key compo- 
nents of job satisfaction, and our key retailers are eager to join us on 
our expanded Community Builders Tour. 

For the most part, Timberland has not chosen to highlight its 
community initiatives in the marketplace — both because it seems 
self-congratulatory and because we believe consumers become skep- 
tical of brands that use their corporate citizenship for market advan- 
tage. External communications are limited primarily to editorial 
opportunities, our CEO speaking frequently on the topic, and a spe- 
cialized web site distinct from our commerce site. Recently in our re- 
tail stores we have added Community Kiosks for the posting and 
promotion of community service events. 

The program, of course, does not go without costs and challenges: 

• Path of Service costs the company in terms of lost time on the 
job. And to make this even more challenging to evaluate, we 
have not been able to truly value this cost as we have lacked a 
sophisticated tracking system, but we are currently developing 
one. That said, we believe the high correlation to job satisfac- 
tion (seen in retention rates and annual survey results) more 
than offsets the costs. 

• As we are an increasingly global brand, we are challenged to 
find the appropriate means for effectively translating the 
ethos of service into a myriad of cultures, customs, and social, 
and governmental frameworks. 

• While other companies have pet causes, we have come to re- 
alize that our commitment is to the ethos of service itself. 
This means that we support a wide variety of causes in the 
name of helping people to discover the joy and power of giv- 
ing of themselves through volunteerism. Sometimes this is 
messier and harder to communicate and coordinate than a fo- 
cused approach. 

Several principles guide the management of our programs, and may 
be helpful to others as well: 

• Choose what feels most authentic to the business or brand. 
Anything that is forced or undertaken merely as a marketing 
initiative will fail with stakeholders. 


Community Volunteering 

• See corporate citizenship investments as a means of building 
equity rather than short-term gain. 

• Make corporate citizenship a part of the core business strategy, 
and make sure it is widely communicated and adopted. 

• Consider the needs and aspirations of all stakeholders. 

• Giving money away is regarded less favorably than investing 
time. Combining the two strategically has worked best. 

• Choose community partners who are willing to work in part- 
nership, those that have mutual goals. 

• Be cautious about flaunting corporate citizenship in the mar- 
ketplace. It can backlash if perceived to be disingenuous. 

• Be prepared to stand by these articulated principles during dif- 
ficult times. That will be when stakeholders will be measuring 
integrity. 28 


In the following case, Stanley S. Litow, vice president for corporate com- 
munity relations and president of the IBM International Foundation, 
shares the On Demand Community, an innovative employee volunteer 
program that IBM believes has effectively leveraged its existing corpo- 
rate social initiatives, as well as invigorated its workforce. IBM has de- 
veloped a reputation for state-of-the-art community programs that 
capitalize on IBM know-how and expertise. Their award-winning pro- 
grams feature world-class technology solutions to address social problems 
and are characterized by buy-in and support of community leaders; broad 
promotion of programs to its employee population; adjustment of tech- 
nology solutions as necessary to make them more immediately respon- 
sive; linkage of programs to other corporate activities; and monitoring 
and evaluation plans that have helped IBM determine program effec- 
tiveness and improvements that needed to be made. 

IBM's commitment to corporate citizenship extends back to when 
Thomas J. Watson Sr. founded the corporation in 1914- His vision 
for the corporation explicitly staked IBM's reputation not only on 
technical leadership, but on community leadership as well. He knew 
that the future of IBM was inextricably linked to the communities in 
which it did business. No company could be successful if it was part 
of an unsuccessful community. 

Keys to Success 


Just as IBM has led a remarkable technological revolution, we 
also have been at the forefront of corporate citizenship. IBM's com- 
mitment to social responsibility has stood the test of time; in our 
nearly 90 years of operations and community involvement, our work 
has changed and evolved with the changing business environment. 

Today, IBM is one of the largest corporate contributors of cash, 
equipment, and people to nonprofit organizations and educational 
institutions across the U.S. and around the world. In more than 160 
countries, we help people use information technology to improve 
the quality of life for themselves and others. 

In November 2003, IBM launched the On Demand Community 
(see Figure 7.8). Through this unprecedented program, IBM is con- 
tributing technology and expertise to help develop and sustain 
strong communities where employees live and work. This is accom- 
plished by building on the success of IBM's award-winning commu- 
nity relations programs, such as Reinventing Education, KidSmart, 
MentorPlace, and TryScience. The new volunteer offerings built 
around these programs plus other brand-new solutions are aimed 
specifically at meeting the changing needs of communities world- 
wide. They provide both IBM technology and talent to schools, not- 
for-profit organizations, and economic development groups, focusing 
on communities threatened by the "digital divide" — the discrepancy 
between those who have the skills and tools to use information tech- 
nology and those who don't. 

On Demand Community is a coordinated effort allowing IBM 
volunteers to provide Web-based solutions and assistance to schools 
and service agencies. A vast array of information and resources has 
been combined in a way that will help make employees better volun- 
teers, able to offer valuable assistance to school and organizations. 

For the first time, employees everywhere are able to go online on 
the IBM Intranet for the full resources of the company in order to 

on demand Ocommunitvi 

Figure 7.8 IBM's On Demand Community supports IBM volunteers 
to provide Web-based solutions and assistance to schools and 
service agencies. (Reprinted courtesy of IBM.) 


Community Volunteering 

serve their communities. This approach to community service plays 
to IBM's strengths in innovation, expertise, reliability, and trust. 

On Demand Community has expanded to include over 15,000 
registered volunteers in 55 countries. The ongoing addition of new 
volunteer solutions will expand the ways we can make a difference. 

We've learned some important lessons from this initiative. We 
learned that the IBM volunteering spirit and support for K-12 runs 
very deep and strong. We also found that more IBMers than we an- 
ticipated, especially outside the United States, were looking for just 
such an initiative. And importantly, we solidified strong views that 
have helped establish guidelines for our future efforts. In general 
terms, these are: 

• Make sure there is a connection between the effort and the core of 
the company. In our case we endeavored to connect our em- 
ployees to programs they were already broadly aware of, had 
significant interest in, and were able to partner with. 

• Make sure you don't compromise the content of what you do. 
Keep your eye on the most valued customer, which must be 
the community in which you are engaged. Provide your em- 
ployees with the tools and resources they need to be success- 
ful, and be prepared to deliver measurable returns calculated 
in a definable impact on education or on society. 

• Include promotional strategies. To reach employees and the 
community you are serving, you must publicize your programs 
both internally and externally and capitalize on efforts to rec- 
ognize and share employee contributions and effective prac- 
tices whenever possible. 

• Develop and implement measurement systems. Independent 
process and outcome evaluations must be in place to deter- 
mine what is working and what is not, and the type of re- 
source investments that will help you to be successful. 

• Conduct due diligence, learn from history but always innovate. It 
is critical to learn from past efforts by companies and founda- 
tions. Use available research literature to help design program 
elements. Don't just modify and adapt as you go along, but in 
everything you do, think bigger and better. Make sure that 
promising ideas are nurtured and foster a culture of innova- 
tion so that programs and people reach higher. 29 

Keys to Success 


Levi Strauss & Co. 

In the following case, the director of community affairs for Levi Strauss 
& Co. describes the rationale behind their company's commitment for 
two decades to one of the major social problems of our time. This depth 
of experience has built a strong set of principles he shares with others in- 
volved in engaging employee volunteer support. 

Twenty years ago, a group of Levi Strauss & Co. (LS&Co.) employ- 
ees sought support to distribute leaflets about a mysterious new dis- 
ease that was devastating the gay community in San Francisco. The 
employees, however, were not sure if company policy allowed them 
to circulate such information and were also concerned that distribut- 
ing these leaflets might lead to misperceptions about their own 
health. Senior executives of LS&Co. not only endorsed the idea to 
distribute materials, but joined staff members and handed them out 
in front of the company's headquarters to show their support for this 
effort to educate their fellow employees. 

Twenty years ago, given the fear and stigma surrounding 
HIV/AIDS, supporting prevention efforts was not seen as an op- 
portunity to burnish the company's image or as a clever way to in- 
crease sales of pants. Even today, questions are routinely asked as to 
why LS&Co. is so involved in the issue. Providing resources to 
community organizations was initiated in response to the immedi- 
ate and growing threat that AIDS posed to the San Francisco com- 
munity — including many Levi Strauss & Co. employees who 
worked at the company's headquarters. Doing the right thing is a 
strong part of the company's 150-year history. Levi Strauss & Co. 
did not ignore this crisis. 

Several efforts of Levi Strauss & Co. and the Levi Strauss Foun- 
dation support HIV/AIDS prevention, including the following: 

• Providing financial contributions to community-based orga- 
nizations in the United States and around the world where 
the company has offices and/or production facilities. 

• Offering employees release time to volunteer at local 
HIV/AIDS service organizations. 

• Supporting employee-led Community Involvement Teams, 
where employee volunteers direct donations to local AIDS 
nonprofit organizations. 


Community Volunteering 

In cash contributions alone, Levi Strauss & Co. and the Levi 
Strauss Foundation have contributed over $26 million to fight the 
spread of HIV/AIDS since the early 1980s. In addition, LS&Co. 
employees have given thousands of hours through AIDS Walks, 
food delivery programs, and outreach and education projects (see 
Figure 7.9). These activities have contributed to a heightened 
awareness about the cause of the disease and ways to prevent it, 
and the stigma associated with the disease is diminishing, albeit 

Although LS&Co. has enjoyed a good reputation for its progres- 
sive social responsibility practices, selling more clothing is not the 
motivation behind working in the community. Corporate social re- 
sponsibility is consistent with the company's values, which are em- 
pathy, originality, integrity, and courage. 

Prospective employees report being drawn to the company, in 
part, by its commitment to important social issues, such as 
HIV/AIDS. Although the public knows of its efforts through the 

Figure 7.9 Levi Strauss & Co. staff members participating in the 2003 
San Francisco AIDSWALK. (Reprinted courtesy of Levi Strauss & Co.) 

Keys to Success 


Levi Strauss Foundation's published "Charitable Giving Guide- 
lines" and Levi Strauss 6k Co.'s web site, we let organizations 
that receive our support speak to the value of the company's 

We consider several factors important to the selection and im- 
plementation of corporate social initiatives, especially when consid- 
ering employee participation and volunteer efforts. 

When selecting a social issue to support . . . 

• Choose issues and organizations that are relevant to the lives 
of the company's employees. 

• Support causes and projects that improve the social and eco- 
nomic environment in the locations where the company has 
its physical facilities. 

• Don't be afraid to tackle complex social issues that may, at 
first, frighten people. 

• Ensure that the projects, issues, and organizations supported 
reflect the values of the company and have the support of se- 
nior leadership involvement, including the CEO and chair- 
man of the board. 

When developing a program plan . . . 

• Engage employees throughout the company in the effort — 
employees at the top, middle, and bottom. 

• Develop partnership between Community Affairs and brand 

• Collaborate with community organizations that are behind 
the most innovative responses to the social issue. 

For successful implementation . . . 

• Stay committed to the issue for an extended period of time in- 
stead of jumping around between different causes. Positive 
change takes time, requiring a long-term investment. Be pa- 
tient. Many of the benefits of supporting worthy social causes 
are not immediately evident. 

• Provide flexible support for community partners, letting the 
organizations use the money for their most urgent needs. 

• Let the organizations receiving support from the company tell 
the story of the company's involvement. 


Community Volunteering 

• Use all of the company's resources, including cash contribu- 
tions, employee volunteering, and executive service on non- 
profit boards, to support a cause or an organization. 

• Use the most creative people on your team to develop truly 
inspirational campaigns. 30 


The reality is that most large corporations and many smaller ones en- 
courage their employees to volunteer in the community. The dilemma 
facing most executives centers more around decisions regarding levels 
and types of support to provide and whether to promote specific volun- 
teer opportunities or to let employees feel free to follow their interests. 
Increased and more formalized support for employees and promotion of 
focused causes are best considered under the following circumstances: 

• When current social initiatives would benefit from a volunteer compo- 
nent (e.g., home supply retail store promoting natural gardening 
offers employees an opportunity to help build a native plant gar- 
den in a local community park). 

• When a group of employees express an interest in a specific cause that 
has strong connections with business and corporate citizenship 
goals (e.g., employees of an outdoor recreational equipment com- 
pany want to volunteer to help prevent forest fires by removing 
hazardous brush in threatened mountains). 

• When a community need emerges, especially an unexpected one 
that is a good match for the resources and skills of a workforce 
(e.g., the example presented earlier where American Express 
helped small businesses in lower Manhattan). 

• When technological advances make it easier to match employees to 
volunteer opportunities. 

• When a strong community organization approaches a business for sup- 
port, represents an issue of interest to employees, and has a natural 
connection to strategic corporate citizenship and business goals. 

• When a volunteer effort might open new markets or provide opportuni- 
ties for new product development and research (e.g., as presented 
in the example of Hewlett-Packard's involvement in underserved 

Developing Community Volunteering Programs 203 


Assuming a company has an interest in developing a formal volunteer 
program and has decided to go beyond informal communications that 
simply encourage the workforce to be involved in the community, the 
following six steps can then be taken. 

1 . Develop guidelines for employee involvement. 

Decisions will be made regarding whether employees will be 
encouraged to volunteer for causes that (only) interest them, or 
whether one or more specific charities or cause efforts will be pro- 
moted. Most commonly, the decision is to adopt a combination of 
these options. If it is determined that specific causes will be promoted, 
the selection of causes is best made by referencing the company's mis- 
sion statement, overall corporate citizenship focus, current social ini- 
tiatives, employee interests, existing community partners, and 
pressing needs in the community. 

2. Determine types and levels of employee support. 

Program options include providing monetary incentives, such as 
paid time off and offering cash grants to charities based on the number of 
volunteer hours spent by individual employees or teams of employees. 
Nonmonetary support may include organizing teams of employees to par- 
ticipate in specific events, and offering software programs that match 
employee interests with a database of local volunteer opportunities. 

3. Develop an internal communications plan. 

Spreading the word to employees at all levels and locations can be 
critical to fulfillment of a successful companywide volunteer program. 
Traditional communication planning elements are appropriate, includ- 
ing developing a program name and graphic identity along with key mes- 
sages that communicate the company's commitment, the need for 
community support, and the desire for employee participation as is evi- 
dent in the "VoluntEARS" program at Disney (see Figure 7.10). 

4. Develop a recognition plan. 

Recognition programs may include components such as mentions 
of volunteer efforts in internal employee communications like in- 
tranet and newsletters, and recognition at departmental and company 
meetings. Some companies also brand this component of the program 
(e.g., Fannie Mae Foundation's Catch the WAVE® (We Are Volunteer 
Employees)). 31 

204 Community Volunteering 

Figure 7.10 Disney VoluntEARS created a special "Sports Goofy" 
mural for a charity that builds playgrounds for children with 
disabilities. (© Disney Enterprises, Inc.) (Reprinted courtesy of 
Disney Enterprises, Inc.) 

5. Develop an external communications plan. 

As a first step, communication objectives should be determined, ad- 
dressing the question of what these communications are intended to sup- 
port. Is the purpose simply to disclose the corporation's community 
involvement, leading to targeted communications in annual reports, for 
example? Or are the communications also intended to strengthen a cor- 
poration's reputation in the community, which carries implications for 
broader media efforts? Perhaps the purpose is to support employee re- 
cruitment or to provide an additional venue for employee recognition. 
Once these objectives are clear and agreed upon, action plans follow. 

6. Develop a plan for tracking and assessment. 

Finally, a plan and system for tracking employee hours and recipients 
of volunteer efforts must be established. Additionally, measures should 
be agreed upon for assessing communication objectives established in 
the communications plan. 




Volunteering in the community, and corporate support to do this, is 
viewed by many as one of the most genuine and satisfying of all forms 
of corporate social involvement. Community volunteering as an initia- 
tive is clearly distinct from others, and yet we see trends towards inte- 
grating these efforts as an additional component of existing corporate 
social initiatives. 

Support for volunteering ranges from programs that just encourage 
employees to give back to their communities to ones that have formal- 
ized written guidelines and make a significant financial investment over 
a long period of time. 

Volunteer programs are said to have contributed to building strong 
and enduring relationships with local communities, attracting and re- 
taining satisfied and motivated employees, augmenting and leveraging 
current involvement and investments in social initiatives, contributing 
to business goals, enhancing corporate image, and providing opportuni- 
ties to showcase products and services. 

Concerns with developing and managing these programs are real, 
including concerns with costs, having a meaningful social impact, re- 
alizing business benefits (appropriately), and tracking and measuring 

Many keys to success are familiar: Match real social, economic, and 
environmental issues with the passion of employees and business needs 
of the company; connect volunteer efforts with the company's broader 
corporate citizenship strategy and other current corporate social initia- 
tives; gain management support up-front for long-term commitments; 
choose strong community partners; support and recognize employees for 
their efforts; and establish systems for tracking and measurement. 
Though there is debate regarding the extent and nature of external com- 
munications, it seems that the best visibility is when messengers are ei- 
ther the recipients of volunteer efforts or employees sharing personal, 
inspirational stories. 

Increased efforts for employee volunteer programs should be con- 
sidered when current social initiatives would benefit from a volunteer 
component; a group of employees express an interest in a specific 
cause; a community need emerges; technological advances make it eas- 
ier to match employees to volunteer opportunities; a strong community 


Community Volunteering 

organization approaches a business for support; or when a volunteer ef- 
fort might open new markets or support new product development. En- 
hanced programs will benefit from strategic plans that call for 
developing guidelines, determining types and levels of employee sup- 
port; and developing plans for internal communications, a recognition 
plan, external communications, and tracking and assessment. 



Socially Responsible 
Business Practices: 
Discretionary Business 
Practices and Investments 
to Support Causes 

Motorola envisions a future in which our factories are accident-free, cre- 
ate zero waste, emit only benign emissions, use energy in highly efficient 
ways, and use our discarded products as feed for new products. . . . We 
are on the threshold of a new era in which all of us — corporations, indi- 
viduals, government, and other organizations — conjoin together to coop- 
erate on the healing of our earth. We can no longer afford to view 
ourselves as separate. We are all interconnected and part of the whole 
and what we do matters and affects the whole. When we harm the envi- 
ronment, we harm ourselves. Our challenge for the new millennium is to 
learn how to live in harmony with our earth.' 

— Motorola's Environmental 
Vision Statement 


208 Socially Responsible Business Practices 

Socially responsible business practices are where the corporation 
adapts and conducts discretionary business practices and invest- 
ments that support social causes to improve community well-being 
and protect the environment. Key distinctions include a focus on activi- 
ties that are discretionary, not those that are mandated by laws or regula- 
tory agencies or are simply expected, as with meeting moral or ethical 
standards. Community is interpreted broadly to include employees of the 
corporation, suppliers, distributors, nonprofit and public sector partners, 
as well as members of the general public. And well-being can refer to 
health and safety, as well as psychological and emotional needs. 

Over the last decade there has been an apparent shift from adopting 
more responsible business practices as a result of regulatory citations, 
consumer complaints, and special interest group pressures, to proactive 
research exploring corporate solutions to social problems and incorporat- 
ing new business practices that will support these issues (e.g., Kraft de- 
ciding in 2003 to revise several business practices to help address the 
continued rise in obesity in our nation). 
Why this shift? 

• There is increasing evidence being documented and shared 
demonstrating that socially responsible business practices can ac- 
tually increase profits (e.g., Chiquita quantifying a $5 million an- 
nual savings by using fewer agrichemicals) and has the potential 
for increasing revenues (e.g., what McDonald's is most likely hop- 
ing as a result of a new adult "Happy Meal" that includes a salad, 
an exercise booklet, and a pedometer). 

• In our global marketplace, consumers have more options and can 
make choices based on criteria beyond product, price, and distrib- 
ution channels. Research presented in Chapter 1 emphasized that 
consumers are also basing their purchase decisions on reputation 
for fair and sustainable business practices and perceptions of com- 
mitment to the community's welfare. 

• Investors and other stakeholders may also be the driving force, 
with increased public scrutiny and use of more sophisticated pres- 
sure tactics, including use of the technology and power of the In- 
ternet (e.g., an e-mail broadcast sent from an antitobacco group, 
letting consumers know that a major retailer had not accepted 
their requests to carry pocket cigarette butt containers). 

Typical Socially Responsible Business Practices 


• An interest in increased worker productivity and retention has 
turned corporate heads toward ways to improve employee satisfac- 
tion and well-being (e.g., Coca-Cola bottlers in South Africa 
launching an HIV/AIDS prevention program in the workplace). 

• Technology and increased third-party reporting has given in- 
creased visibility and coverage of corporate activities, especially 
when things go wrong, as with current corporate scandals that 
have made the public more suspicious of business, creating the 
need for businesses to put a positive shine on their activities. This 
is even more critical today, with instant access to 24-hour news 
channels such as CNN, online news articles, and e-mail alerts 
(e.g., recent publicity that a major communications firm had vio- 
lated the "do-not-call list" regulation, and announcement of po- 
tential associated fines). 

• The bar for full disclosure appears to have been raised, moving po- 
tential customers from a "consumer beware" attitude to an expecta- 
tion that they will be fully informed regarding practices, including 
product content, sources of raw materials, and manufacturing 
processes (e.g., Kraft's initiative to label smaller snack and beverage 
packages with the nutrition content of the entire package). 2 


As might be expected, most initiatives related to socially responsible 
practices relate to altering internal procedures and policies, such as those 
related to product offerings, facility design, manufacturing, assembly, and 
employee support. An initiative can also be reflected in external report- 
ing of consumer and investor information and demonstrated by making 
provisions for customer access and privacy, and can be taken into consid- 
eration when making decisions regarding hiring practices and facility 
and plant locations. Common activities include the following: 

• Designing facilities to meet or exceed environmental and safety 
recommendations and guidelines, such as for increased energy 

• Developing process improvements, which may include practices such 
as eliminating the use of hazardous waste materials, reducing the 


Socially Responsible Business Practices 

amount of chemicals used in growing crops, or eliminating the use 
of certain types of oils for deep-fat frying. 

Discontinuing product offerings that are considered harmful but not 
illegal (e.g., McDonald's discontinuing their supersize portions of 
french fries). 

Selecting suppliers based on their willingness to adopt or maintain 
sustainable environmental practices, and supporting and reward- 
ing their efforts. 

Choosing manufacturing and packaging materials that are the most 
environmentally friendly, taking into consideration goals for 
waste reduction, use of renewable resources, and elimination of 
toxic emissions. 

Providing full disclosure of product materials and their origins and 
potential hazards, even going the extra mile with helpful informa- 
tion (e.g., including on product packaging the amount of physical 
exercise needed to burn the calories and fat contained in the 
candy bar, or the number of pounds of pollutants that will be gen- 
erated from a gas mower). 

Developing programs to support employee well-being, such as work- 
place exercise facilities, on-site day care, and Employee Assis- 
tance Programs for those with drug-related additions. 

Measuring, tracking, and reporting of accountable goals and actions, 
including the bad news, as well as the good. 

Establishing guidelines for marketing to children to ensure responsible 
communications and appropriate distribution channels (e.g., not 
selling products online to children ages 18 and under). 

Providing increased access for disabled populations using technology 
such as assisted listening devices, voice recognition mechanisms, 
and alternate print formats. 

Protecting privacy of consumer information, an area of increasing con- 
cern with the sophisticated data collection, recognition, and track- 
ing of individuals and their movements, especially via the Internet 
(e.g., an online retailer allowing the customer to purchase products 
without providing demographic profile information). 

Making decisions regarding plant, outsourcing, and retail locations, rec- 
ognizing the economic impact of these decisions on communities. 

Potential Corporate Benefits 


As represented in Table 8.1, although a wide range of industries par- 
ticipate in incorporating responsible business practices, the field appears 
to be dominated by those in the manufacturing, technology, and agricul- 
tural industry categories, where more decisions are made regarding sup- 
ply chains, raw material, operational procedures, and employee safety. 
Those involved in proposing and developing socially responsible busi- 
ness practices most often include operation, facility, corporate social re- 
sponsibility, and other senior managers, and to some extent marketing 
and strategic planners. Communications regarding the adoption of so- 
cially responsible business practices are most often aimed at regulatory 
agencies, investors, customers, and special interest groups. Although 
most often the corporation develops and implements practices on its 
own, it may also do this in partnership with public agencies, nonprofit 
organizations, suppliers, and distributors. 


As will be illustrated in the following examples, a wide range of benefits 
have been experienced by corporations that adopt and implement so- 
cially responsible business practices, and there appears to be an increas- 
ing ability to link these efforts to positive financial results. 3 

Financial benefits have been associated with decreased operating 
costs, monetary incentives from regulatory agencies, and increased em- 
ployee productivity and retention. Marketing benefits are numerous as 
well, with the potential for increasing community goodwill, creating 
brand preference, building brand positioning, improving product qual- 
ity, and increasing corporate respect. And, as with other social initia- 
tives, these activities also provide opportunities to build relationships 
with external partners such as regulatory agencies, suppliers, and non- 
profit organizations. 

Decreases Operating Costs 

In this example, adoption of discretionary business practices saved the 
company money, contributed to environmental sustainability, and in- 
creased energy consciousness among employees. 

Table 8. 1 Examples of Socially Responsible Business Practices 



Target Audiences 

Sample Activities 

Major Partners/Others 




Facility planners and 

Energy saving devices 
Plant design 

Local utility 

I acq-I rvla 
KJ C a - x_- \j Id. 


1 11 V / i\. 1 L/J 

Pmn huppc wil"n H 1 \/ nnn 

u,iiipiuy cc5 wiLii i ii v diiu 


PHi ii^Q t"i nn nnl 'm\ p*c 
iJ.LlU.Cd.Lll.Jll jJUHClCa 

Pharmaceutical suppliers 


Use sustainable 
raw materials 

customers and potential 

Policy development 
Changes in product content 

Employee action teams 


Waste reduction 

Operations managers 
Facility managers 

Recycling Process redesign 



\x//~irL"n 1 arp catp>t"Ar 
W (.MlSdJldCC adlCLy 

ijiiipiuy ccs ii l liic 


I lranrjf 1 in nrnrpccpc 
V_>lldliyc 111 piUCCSSca 


innl ip>rc 


Piicil offl p ipini^ir 
1 UCl CllLClCllCy 

I nncumprc intprpstprl in 

wind power 

IVCpidCLllg ClCCLllCdl JJtJWCi 

with wind energy in 
manufacturing plants 



Prntpr t"i n r» t"mnii"al 
1 i(JI_Cl_Lliiy LiUjJlCdl 

rainforests and 
supplier relations 

mn 1 iprc/rarmprc 


1 jeii 7/=> 1 nn i n rr rtt liriP 1 ! inpc 
LJC V C ll )y 11 iy gLIlUCllllCa 


New coffee product 

I /-in QP>r^ 7Q 1"i IntprnQrirmal 
V^tJllSCl VdLlUI L lllLCllldLlOI Ldl 

Kraft Foods 




Packaging size 

External council of 


Responsible reporting 


Special interest groups 

Certification standards 
Guiding values 

Rainforest Alliance 

Potential Corporate Benefits 


Example: Cisco and Energy Conservation 

Cisco's philosophy for new construction is to "plan it right," which 
means thinking about energy efficiency during the design phase. 
And for Cisco, this also means bringing together employees who 
specialize in the design side with those who have day-to-day work- 
ing familiarity with facilities, leveraging each other's expertise. 

Cisco used innovative energy conservation technology to design 
and build its San Jose headquarters campus to meet and often ex- 
ceed California's energy conservation standards and to help main- 
tain its valued site certifications. This facility was built to exceed 
California State's Title 24 energy standards by 15 to 20 percent. By 
exceeding these standards, Cisco not only lowers costs and lessens 
environmental impact but also takes advantage of incentives of- 
fered by its local energy supplier, Pacific Gas 6k Electric (PG&E). 
"At two of our headquarters sites, which include 4-9 million square 
feet of space in 25 buildings, we conserve an average of 49.5 mil- 
lion kilowatt-hours per year. We expect to save about $4-5 million 
per year in operating costs. On top of that, those energy savings 
qualified us for $5.7 million in PG&E rebates when construction 
was completed," says Sheikh Nayeem, energy manager. 

The environmental benefits of Cisco's energy conservation at its 
San Jose headquarters are also measurable and impressive. "The 
49.5 million kilowatt -hours per year that Site 4 and 5's 25 build- 
ings save could power 5,500 homes. Those facilities are also pro- 
ducing almost 50 million fewer pounds of carbon dioxide per 
year and 14,300 fewer pounds of nitrogen oxide. That's the 
equivalent of removing 1,000 cars from the road," says Nayeem. 4 

Increases Community Qoodwill for the Corporation 

Imagine the goodwill generated across Africa from the strong commit- 
ment that Coca-Cola has made to abate the tragic epidemic that has cost 
more than 20 million lives across the countries of sub-Saharan Africa. In 
2003 an estimated 23.1 million adults age 15-19 and 1.9 million chil- 
dren under the age of 15 were living with HIV/AIDS and close to 9,000 
new infections occurred each day. 5 

214 Socially Responsible Business Practices 

Example: Coca-Cola and HIV/AIDS in Africa 

The Coca-Cola Company believes that the business community 
can play an important role in battling AIDS by putting into 
place important initiatives and programs. Since the launch of its 
HIV/AIDS program in November 2000, one key strategic thrust 
has been to introduce model workplace programs for their 1 ,200 
African employees. 6 

The HIV/AIDS Workplace Program includes the formation of a 
local AIDS Committee; free condoms for all associates; AIDS 
awareness and prevention material; peer counselor identification 
and training; employee basic HIV/AIDS training; free testing 
and counseling on a confidential basis, and medical coverage; 
confidential AIDS testing; and access to antiretroviral drugs and 
prophylactic treatment. 

Along with this program, Coca-Cola developed an HIV/AIDS 
corporate policy that commits to non-discrimination on the ba- 
sis of HIV/AIDS status; a right to privacy for employees; encour- 
agement of voluntary disclosure by an HIV positive associate; 
voluntary testing; reasonable accommodation; encouragement 
of prevention practices; identification of community resources; 
and fostering partnerships with government and NGOs for the 
implementation of its HIV/AIDS programs. 

In 2002, it was announced that the Coca-Cola Africa Founda- 
tion (see Figure 8.1) was expanding this commitment by work- 
ing with Coca-Cola's 40 bottlers, which employ 60,000 people 
across Africa, to put in place similar comprehensive workplace 
prevention programs. The estimated costs of this initiative to 
the Coca-Cola Africa Foundation will be between $4 million 
and $5 million per year. 7 

Creates Brand Preference with Target Markets 

As demonstrated in the following example, products can be utilized to 
showcase a company's responsible business practices, providing a reason 
beyond price and distribution channels to chose one brand over another, 

Potential Corporate Benefits 


9k &*$%J/um #o«,i<tal<c» 

Figure 8. 1 Coca-Cola bottlers in Africa have received support from 
the company's foundation for comprehensive workplace HIV/AIDS 
prevention programs. (Reprinted courtesy of Coca-Cola Foundation.) 

especially when target markets care about the focus of the particular ini- 
tiative and the marketplace is relatively undifferentiated. 

Example: Nike and Environmental Product Innovation 

Until the late 1980s, Nike reported, its environmental commit- 
ment was to simply be in compliance with regulations and to 
support local nonprofit organizations. A small task force of em- 
ployees then entered the picture and established an environ- 
mental steering committee. 

In 1993 this group became a formal department called the Nike 
Environmental Action Team (N.E.A.T.). Efforts focused on com- 
pliance, recycling, and education, and included the formation of 
innovative new programs such as Nike's Reuse -A-Shoe program in 
1994- Over the next five years the group's work further strength- 
ened the company's commitment to finding even more ways to 
help reduce its environmental impact. The group's momentum 
evolved into the adoption of Nike's Corporate Environmental Pol- 
icy in 1998. The policy was announced both inside and outside the 
company, and was endorsed by Nike's CEO and president, who 
committed Nike to the company wide pursuit of sustainable busi- 
ness practices. This policy served as a tool to communicate the 
scope of its environmental commitment inside Nike and to those 
who have a stake in Nike's long-term prosperity. 

Nike continues to strive to incorporate environmental respon- 
sibility throughout its operations and product life cycle. Envi- 
ronmental responsibility is now an added dimension of Nike's 

216 Socially Responsible Business Practices 

product design innovation platform, and the company has set 
long-term goals for the environment. This commitment is re- 
flected in decisions regarding products and responds to increas- 
ing consumer demand for sustainable options as well as the 
company's commitment to environmental sustainability. An 
insignia (see Figure 8.2) was introduced with the intent to en- 
gage consumers in conversations about environmental sustain- 
ability. This insignia appears on select Nike product and 
service innovations that focus on creating environmental prac- 
tices for the business. Examples range from apparel to Nike's 
Reuse-A-Shoe and Air To Earth programs. Appearing on hang- 
tags, in-store materials, and press releases for select items and 
programs, the insignia directs people to 
where they can learn more. Since September 2002, a line of 
apparel containing cotton that's 100 percent certified organic 
has carried the logo. 

Builds Influential Partnerships 

As mentioned in Chapter 1, Business for Social Responsibility asserts 
that companies engaging in responsible business practices may experi- 
ence less scrutiny from national as well as local government agencies. "In 
many cases, such companies are subject to fewer inspections and less pa- 
perwork, and may be given preference or 'fast-track' treatment when ap- 
plying for operating permits, zoning variances, or other forms of 
governmental permission. The U.S. Federal Sentencing Guidelines al- 
low penalties and fines against corporations to be reduced or even elimi- 
nated if a company can show it has taken 'good corporate citizenship' 

Figure 8.2 This insignia has been used at times on products and 
services focused on responsible environmental business practices. 
(Reprinted courtesy of Nike.) 

Potential Corporate Benefits 


actions and has effective ethics program in place." 8 Note the strong rela- 
tionship that Motorola has apparently established with an influential 
regulatory agency in the following example. 

Example: Motorola and the 
U.S. Environmental Protection Agency 

Motorola's environmental vision calls for the company to fully 
support sustainable use of the earth's resources, with responsible 
business practices concentrated in three major areas: protecting 
the land, protecting the air, conserving water. 9 

Programs designed to protect the land include a program called 
WasteWise, a voluntary U.S. EPA program where organiza- 
tions eliminate costly municipal solid waste, benefiting their 
bottom line and the environment (see Figure 8.3). Since join- 
ing the WasteWise program in 1994, Motorola's U.S. manufac- 
turing sites are reported to have recycled almost 125,000 tons 
of waste. In the year 2000, Motorola was one of three compa- 
nies to be chosen by the EPA as "WasteWise Partner of the 
Year for Very Large Business," recognizing these accomplish- 
ments in waste reduction. 10 

Motorola has also developed packaging reuse systems, such as 
the Compack™ system, developed to eliminate the need for sep- 
arate product packaging by using a standardized tray to receive 
incoming components from suppliers and then reusing the tray 
to ship the finished pagers to customers. This system eliminates 
over 140 tons of packaging waste each year and saves Motorola 
approximately $4-3 million annually. The Compack system was 
featured as the "Innovation of the Month" in a U.S. EPA Waste- 
Wise bulletin. 11 

To contribute to protecting the air, in 1992 Motorola was the sec- 
ond electronics firm in the world to eliminate the use of chloro- 
fluorocarbons (CFCs) from its manufacturing processes. The 
EPA recognized Motorola with the 1991 Stratospheric Ozone 
Program Award for its innovative methods for electronic com- 
pound cleaning that eliminated the use of CFCs. 12 

218 Socially Responsible Business Practices 

Preserving Resources, 
Preventing Waste 

Figure 8.3 Motorola participates on a voluntary basis in the U.S. 
Environmental Protection Agency's waste reduction program. 
(Reprinted courtesy of EPA.) 

Enhances Employee Well-Being and Satisfaction 

As we have seen, most corporate social initiatives can contribute to en- 
hanced employee retention and satisfaction efforts, as they engender per- 
ceptions of pride in being associated with a company with a strong 
reputation for community building and goodwill. Socially responsible 
business practices can take this even further, offering the additional ben- 

Potential Corporate Benefits 


efit of actually contributing to improved employee health and safety, as 
illustrated in the following example. 

Example: Intel and Environmental Health and Safety 

Safety at Intel is more than just a corporate initiative; it's an in- 
tegral part of the company's culture. It wasn't always that way. 
Ten years ago, Intel's safety performance and programs were 
fairly average for the semiconductor industry. Today, Intel's 
safety programs and performance have achieved world-class lev- 
els. One of their long-range goals for environmental health and 
safety is to prevent all injuries in the workplace. 13 

This dramatic change has entailed transforming how people think 
and act toward safety. Such a change in culture requires motivat- 
ing employees at all levels to be safety-oriented, and it has de- 
manded the commitment of Intel's entire management team. 

In 2001, two company managers in Oregon took a novel ap- 
proach to safety. They put their hairdos on the line. If the orga- 
nization could complete 500 days without an injury, they 
promised to shave their heads. The goal was reached, and both 
managers had their heads buzzed boot-camp-style bald in front of 
a cheering crowd. The head of Intel's Worldwide Safety sees two 
great themes emerging from the organization's excellent safety 
record: "They have not only achieved and sustained safety excel- 
lence, but their management is visibly and personally involved 
in setting challenges, and this makes all the difference." 14 

Intel's Design for Environment, Health, and Safety program is a 
prevention program focusing on early identification of safety 
problems that can result from new tool or process methods. It is 
believed that "this early intervention and up-front partnering 
with suppliers is a key reason why Intel is one of the safest places 
in our industry to work." 15 

Contributes to Desired Brand Positioning 

In the following example, we can imagine that this company's voluntary 
decision to alter a business practice is likely to further position this brand 

220 Socially Responsible Business Practices 

as one with a long history of commitment to sustainable environmental 
practices and corporate responsibility. 

Example: Silk and Wind Power 

In February 2003, White Wave, the country's largest soy foods 
manufacturer and producer of the well known Silk Soymilk, an- 
nounced it would be replacing the electrical power used in all of its 
operations with clean, sustainable, renewable wind energy (see Fig- 
ure 8.4). According to the EPA, "White Wave is the largest U.S. 
company to purchase 100 percent new wind power for all of its op- 
erations, providing an outstanding example of environmental lead- 
ership." According to the EPA, White Wave's purchase of wind 
power will save approximately 32 million pounds of carbon dioxide 
emissions each year — equivalent to taking 3,200 cars off the road. 

"White Wave has always been committed to socially responsible 
and environmentally sustainable business practices," says Steve 
Demos, company founder and president. "We have previously 
demonstrated this through our 25-year devotion to the process- 
ing of non-genetically modified, organically raised soybeans. To- 
day our announcement to purchase wind energy is another 
legitimate step in creating a business model that is both prof- 
itable and environmentally sound. We believe this initiative is a 
partial fulfillment of our corporate responsibility to return to the 
marketplace a portion of the profits we derive to meaningful and 
environmentally sustainable business practices. We are delighted 
to do so without economic impact to the consumer." 

White Wave is also encouraging its consumers to purchase wind 
energy (a cause promotion initiative in our model). Consumers 
can visit their web site to learn more about wind energy and sign 
up to purchase wind energy credits for home use. 16 


Perhaps more than with any other social initiative, corporate motives for 
new and more responsible business practices will be questioned, actions 

Potential Concerns 



Figure 8.4 White Wave, a soy foods manufacturer, purchased 100 
percent new wind power for all of its operations. (Reprinted courtesy of 

will be judged, and results will be scrutinized. Audiences will ask, "Is this 
for doing good or for doing well?" And it will be asked by many, even 
most, of the company's constituent groups: customers, the general public, 
employees, investors, regulatory agencies, and the media. Common per- 
ceptions include the following challenges: 

• People will be skeptical of the corporation's motives. They will likely 
want to believe the news (e..g., decreased use of harmful chemi- 
cals in a manufacturing plant) but will wonder whether the news 
is some type of public relations stunt (e.g., it only applies to one 
chemical and one type of plant). They'd like to believe this is a 
real, substantial change in the way the company will be doing 
business going forward, but they will wonder if the campaign is 
just to cover up something that the company doesn't want the 
public to know or whether it is to distract attention from some 
impending bad publicity. 

• They will look for actions that back up words and fulfill promises. 
When a company, for example, announces a major program with 
a renewed emphasis on sustainable building practices, some will 
want to know if the company will only make changes in new 
plants, or if they will retrofit and upgrade existing ones as well. 
When it is written in an annual report that a renewed commit- 
ment has been made to recycling in the workplace, what actual 
changes in infrastructure will be made? Will separate bins for 

Socially Responsible Business Practices 

colored paper, glass, and plastic bottles be provided and conve- 
niently located throughout the workplace, even in conference 
rooms? Are corporate supplies of paper made from recycled and 
recyclable materials? Are internal meeting agendas printed on 
two sides and do staff members get reminders to print out only 
those e-mails that they need to file? 

They will want to know if this is a long-term commitment or a short- 
term campaign. There will be a big difference in perception be- 
tween a company that stresses that "this year we want everyone to 
try to join a carpool or vanpool or take the bus to work" and one 
that adopts a program that offers free bus passes, covered bike 
racks, ride matching, flex cars for personal use, monthly incen- 
tives, increased parking charges for single-occupant vehicles, and 
visible publication of the names of all employees who have joined 
the effort (or not), including senior managers. 

They will have questions about whether and how the new practices 
will make a real difference. It won't be enough to just say this 
will improve the environment, increase employee safety, or pro- 
tect consumers. Constituents will want concrete, measurable 
facts that demonstrate impact (e.g., number of tons of garbage 
that are now being recycled and not going into landfills, 
number of employees no longer coming to work in single- 
occupant vehicles, and the associated reductions in fuel use and 
air pollution). 

They will want to know what you used to do. When a new practice 
is announced (e.g., more disclosure of product contents), the 
next most likely question for many will be "What else haven't 
you been telling me?" Or, when a harmful practice is abandoned 
(e.g., dumping of pollutants into streams), they will want to 
know what harm was done all those years before you banned this 
harmful practice. 

They will be waiting to hear the results of your efforts. Once reforms 
are implemented, audiences will be watching for reports on how 
you did relative to published goals (e.g., in annual reports) and, if 
you didn't achieve the desired results, what further measures will 
be taken. It will be important to report the bad news as well as the 
good, externally as well as internally. 

Keys to Success 



Many keys to success described in the cases to follow address ways to deal 
with challenges and concerns facing the implementation and reporting 
of new business initiatives. In summary, corporate managers encourage 
others to decrease skepticism and criticism by being preemptive; by 
choosing an issue that meets a business as well as a social need; by mak- 
ing a long-term commitment; by building employee enthusiasm; by de- 
veloping and implementing infrastructures to support the promise; and 
by providing open, honest, and direct communications. 

Starbucks and Conservation International 

Starbucks believes in the value of making long-term investments that 
will produce social, environmental, and economic benefits for the com- 
munities in which it operates. The following case features an initiative 
that reflects this commitment, one that rewards environmental conser- 
vation and increases economic opportunities for the people who produce 
Starbucks' coffees. 

This story, told by Starbucks vice president for business practices, 
makes a strong case that corporate social initiatives should be proac- 
tive, rather than reactive, demonstrating a true commitment, not a de- 
fensive response. 17 

In October 1998, Starbucks and Conservation International (CI), a 
nonprofit conservation organization, began a partnership to support 
farmers of shade-grown coffee while also protecting tropical forests. 
Through CI's Conservation Coffee program, Starbucks encourages the 
production of coffee using cultivation methods that protect biodiver- 
sity and provide improved economic opportunities for coffee farmers. 

Our first project site was at the El Triunfo Biosphere Reserve in 
Chiapas, Mexico, a region considered to be one of the world's most 
environmentally sensitive. Conservation International and Star- 
bucks supported farmers who grow coffee under the protection of 
shade, creating and maintaining a forested buffer zone around the re- 
serve. In 1999, Starbucks made an initial purchase of 76,000 pounds 
of Shade Grown Mexico coffee and began offering it in our U.S. re- 
tail locations. 

224 Socially Responsible Business Practices 

In 2000, the partnership was expanded to include (1) increasing 
efforts to promote conservation and improve livelihoods in a wide 
range of global biodiversity hotspots; (2) supporting the introduction 
of a year-round product line that reflects Starbucks' commitment to 
sustainable coffee production; (3) developing coffee-sourcing guide- 
lines that promote conservation and improve the livelihood of farm- 
ers; and (4) engaging other leaders from the coffee world in a 
collaborative effort to set industrywide guidelines for environmental 
and social quality. 

In fiscal 2001 we invested more than $325,000 in the program, 
and in fiscal 2002 we signed a three-year commitment to provide a 
minimum of $600,000 to the effort. 

Because most of Starbucks' marketing efforts are at the store level, 
promotional activities primarily focused on supporting purchases of 
shade-grown coffee with point-of-sale material including informa- 
tional pamphlets, posters, visibility on packaging, and relying on well- 
educated partners (employees) (see Figure 8.5). When we introduced 
the coffee, we also invited local and wire reporters to our headquarters 
for a coffee tasting and a joint presentation by CI and Starbucks, re- 
sulting in millions of media impressions in print and on TV and radio. 

In terms of results for the farmers, CI reported that in fiscal 
2002 farmers supplying Shade Grown Mexico received an 87 per- 



Figure 8.5 Starbucks believes that support for farmers supplying shade 
grown coffee beans will help provide long-term sustainable suppliers. 
(Reprinted courtesy of Starbucks.) 

Keys to Success 


cent premium over local prices for their coffee; exports of coffee 
from this Chiapas Conservation Coffee program increased 100 per- 
cent over fiscal 2001; more than 1,000 farmers participated in the 
program, up from 691 the year before; and the milling yield for cof- 
fee (green coffee beans resulting from processing raw coffee) in- 
creased from 64 percent to 76 percent. And for the environment, 
more than 7,400 acres of coffee fields in Chiapas are currently man- 
aged using best practices for conservation coffee. Now, Starbucks 
and CI are developing similar conservation projects in Colombia 
and Peru. 

For Starbucks, this initiative has helped us develop a strong 
model for how we select and work with an NGO. It has provided the 
company with a long-term, sustainable supply of excellent coffee, 
and a product for consumers interested in an environmental at- 
tribute; and it is a source of pride for our employees and partners, 
seen as a serious commitment due to the long-term investment of 
significant resources. It has strengthened our reputation as a socially 
responsible company. In 2002, we were selected as a recipient of the 
2002 World Summit Business Sustainable Development Partner- 
ships award with CI by the International Chamber of Commerce 
and the United Nations Environment Program. 18 

Our experience reinforces the following recommendations for a 
successful program: 

• Select an issue that meets a company need, as well a social 
one. We had a need for a long-term quality supply of coffee, 
one consistent with our commitment to conduct business in 
ways that provide environmental, social, and economic bene- 
fits to the community. 

• Focus on an initiative that can be connected to your business. 
This adds relevance and credibility to the effort. We were 
asked to answer tough questions about the value this will have 
to the company, the customers, and the producers. 

• Choosing something that will be easy to talk about in the 
company will make it easier for you to generate enthusiasm 
and support. 

• Before beginning a partnership with an NGO, prepare a writ- 
ten agreement specifying clear timelines and deliverables. 
Then have it signed at the highest level, by both CEOs. 

226 Socially Responsible Business Practices 

Kraft Foods Qlobal Obesity Initiative 

The rise in obesity is among the most important public health challenges 
facing the world today. The people at Kraft Foods believe they have a re- 
sponsibility along with many others to be part of the solution, and they 
want to be. They make it clear that the following initiative described by 
a Kraft executive is not a cause promotion, but rather an initiative di- 
rected at their own policies, practices, and behaviors as a corporation. 
And they say they expect to make a good return on their investment. 

In July 2003, we announced that we were initiating a new series of 
steps to further strengthen the alignment of our products and market- 
ing practices with societal needs. Senior management and functional 
leaders from corporate affairs, law, marketing, and R&D were the ini- 
tial drivers but the effort has been embraced by the entire Kraft orga- 
nization. Their efforts are being supported by a global team of 10 
experts from outside the company who will serve on our Worldwide 
Health and Wellness Advisory Council, formed to help structure 
policies, standards, measures, and timetables for implementation. 

The commitments Kraft is making are global in scope and will 
focus in four key areas: product nutrition, marketing practices, con- 
sumer information, and public advocacy. A few of the planned steps 
include providing a broad range of portion-size choices, labeling 
smaller snack and beverage packages with the nutrition content of 
the entire package, improving the nutrition profile of our products 
(see Figure 8.6), eliminating all in-school marketing, and advocating 
for public policies to engage schools and communities in helping im- 
prove fitness and nutrition. 

Costs associated with the initiative will include costs for re- 
search and development, capital investments to change manufactur- 
ing and packaging processes, and costs of raw materials, which may 
go up or down depending on the changes we make. 

Awareness of this initiative was created using news releases, the 
provision of information on our corporate web site, meetings with 
government leaders, and presentations to key stakeholder groups. 
We conducted well over 100 media interviews, resulting in wide- 
spread media coverage around the world. 

At this early stage in the initiative, the primary benefit has 
been to Kraft's corporate reputation. Feedback from key con- 

Keys to Success 


gure 8.6 Kraft Foods' Global Obesity Initiative includes improving 
e nutritional profile of products. (Reprinted courtesy of Kraft Foods.) 

stituencies, including policy influentials, the nutrition and health 
community, activists, and media, has been significant and posi- 
tive. A U.S. public opinion survey found that the initiative was 
received favorably by a strong majority of those who had aware- 
ness of it and that a strong majority believed Kraft was doing its 
part to address the obesity problem in a responsible way. We be- 
lieve there is a significant growth opportunity that this initiative 
will ultimately help us capture. As more people become convinced 
of the importance of a healthy lifestyle, they are going to want 
products and portion sizes that help them meet their goals. We 
want to be that company. 

From a corporate responsibility perspective, our decision to pro- 
ceed with this initiative was driven by six principles: 

1. We believe that companies that are seriously out of touch with 
societal expectations will find themselves under mounting eco- 
nomic, social, and political pressure. Companies that are well 
aligned will enjoy growing support in these same three spheres. 

228 Socially Responsible Business Practices 

2. In deciding which societal concerns a company should address, 
focus first on the most relevant, close-to-home issues — the ones 
that are hard-wired to your business, where expectations are the 
most immediate and the cost of inaction is greatest. 

3. Don't wait until an issue reaches a crisis before addressing it. The 
longer you wait, the bigger the challenge will be. 

4. Actions are more important than words. Make sure there's sub- 
stance supporting the rhetoric. 

5. In communicating the steps you are taking, be accessible to those 
who want to know more. 

6. Recognize that change of this magnitude in most large organiza- 
tions takes time, patience, and consistent effort from a broad ar- 
ray of disciplines to reach the critical tipping point. 

Chiquita's Better Banana Initiative 

In the following case, the socially responsible business practice of respon- 
sible reporting is highlighted. 

An article in the December 2, 2002, edition of the Financial Times 
described Chiquita's attempt to break with the past, as demonstrated 
through its obtaining stringent independent environmental certifica- 
tions, developing labor agreements with international and regional 
unions, and signing a groundbreaking accord with Southern Hemisphere 
unions. The chief operating officer for the company was quoted as say- 
ing, "It's hard to change the image of a century-old corporation. But it's 
not something we belabor. It happened in the past." The headline for the 
article read, "The Banana Giant That Found Its Gentle Side: Corporate 
Social Responsibility." 19 Then, in the July/August 2003 issue of 
green@work magazine, a cover story featured Chiquita and Ben & Jerry's 
as co-winners of an award for sustainability reporting, with a lead story 
titled "Banana Split." (See Figure 8.7) 

"They couldn't be more different. Ben 6k Jerry's is the quintessential 
do-gooder corporation founded by two school chums in a renovated gas 
station in Vermont that has captured the environmental mantle in the 
food industry," the story read. "Chiquita Brands, a huge multinational 
corporation, has had a long and sometimes unsavory history that in- 
cludes accusations of unfair labor practices and bankruptcy. Aside from 

Keys to Success 


Figure 8.7 Chiquita and Ben & Jerry's were featured as co winners 
for sustainability reporting in green@work magazine's July/August 
2003 issue. (Photo courtesy of green@work magazine, photographer 
Jim Robinette.) 

230 Socially Responsible Business Practices 

producing two of the world's favorite foods — ice cream and bananas, 
which just happen to work well together — they are seemingly poles apart 
in every way. How is it then that these two ended up as co-winners of an 
award for sustainability reporting?" 20 

In the following highlight, Chiquita provides more background 
about the changes that led to this positive visibility for the corporation's 
effort, and shares what the company considers its five keys to success. 

In the late 1990s, Chiquita was the target of significant criticism re- 
garding environmental and labor practices from news media and 
nongovernmental organizations, even though we had already begun 
the process of achieving certification for meeting rigorous standards 
established by the Rainforest Alliance. This led the management 
team to answer several tough questions: 

• We believe we operate ethically, but how do we know? 

• Do we have a set of guiding principles to align employees 
throughout the company? 

• How do we know we are living up to them? 

We then initiated a comprehensive and very inclusive process to de- 
velop Chiquita's guiding values — what we call our Core Values — 
one of which is the statement that "We communicate in an open, 
honest, and straightforward manner." These efforts have garnered 
considerable attention and some important awards. In addition to 
the co-award with Ben 6k Jerry's, we were ranked first in the world 
among food companies by SustainAbility and the United Nations 
Environment Programmme for our 2000 Corporate Responsibility 
Report. While we didn't start reporting to win awards, these awards 
validate that what stakeholders really respect most is openness and 
honesty in reporting, and it is an indication that we are being recog- 
nized for exactly what we are trying to do. 

Rather than trumpet our corporate responsibility successes, we 
have purposely taken a more low-key approach, in particular, letting 
our actions speak louder than our words, and letting independent 
observers point out our successes. We believe this approach has been 
successful and is perceived to be more credible than a high-profile 
marketing or public relations effort. 

It has taken more than $20 million and eight years to fully 
comply with the Rainforest Alliance certifications standards on 

A Major Socially Responsible Business Practice Initiative 23 1 

100 percent of our farms in the five countries of Central America 
where we operate. 

We can quantify financial benefits (e.g., in 2002, we saved more 
than $5 million compared to 1997 by using fewer agrichemicals, and 
a pallet recycling program saved us $3 million a year) but rescuing 
our reputation has been priceless. Employee pride has clearly im- 
proved. The value of the Chiquita brand has risen. Activist cam- 
paigns directed against us in the late 1990s have essentially gone 
away. The tone of our media coverage has turned around. 

We have summarized keys to our success as the "Five Cs": 

1. First is conviction. Corporate responsibility is about real im- 
provement in business performance, not public relations. 

2. Second is commitment. At Chiquita, we've made a fundamen- 
tal commitment to values and assigned ownership and ac- 
countability to our operating managers. When we commit, 
we deliver. 

3. Third is communication. We have committed to open, honest, 
and direct communication with all of our stakeholders. 

4. Fourth is consistency. This is indeed a process of continuous 
improvement. We have tied corporate responsibility goals to 
our everyday management and reward systems. Corporate re- 
sponsibility is an essential part of Chiquita's culture and cen- 
tral to our strategy. 

5. And finally, corporate responsibility is about credibility. We 
know that our ability to improve — and your ability to trust 
our performance — depends on the credibility of our effort. 
That's why we've committed to achieve verifiable third-party 
standards, measure our performance honestly, and report our 
progress transparently — even when we don't always meet cer- 
tain goals. 


Some consider the word responsibility, whether at the personal or corporate 
level, to mean "ability to respond," as opposed to a focus on blame. Looking 

232 Socially Responsible Business Practices 

at it from this perspective, a corporation should regularly review and con- 
sider new or modified business practices that will improve the quality of life 
and, at the same time, provide some net benefit to the corporation, ideally 
financial, operational, relationship-building, or marketing in nature. Cir- 
cumstances that might provide this optimal situation could include the fol- 
lowing (most references are to examples cited earlier in this chapter): 

• When a company has been offered a financial incentive to alter a 
business practice for the benefit of the environment, most typi- 
cally from an external public or regulatory agency (e.g., Cisco's 
incentive from the local energy supplier to meet or exceed guide- 
lines for energy conservation). 

• When the adoption of a new practice would reduce operating costs, 
as well as contribute to a social issue (e.g., Chiquita saving mil- 
lions each year after reducing its use of select chemicals). 

• When a current business practice can be identified (in part) as 
contributing to an important social problem, and modifications and 
improvements would help address the issue (e.g., McDonald's de- 
ciding to phase out supersize options). 

• When there is an opportunity to improve employee health, safety, or 
well-being by altering a business practice or investing in infrastruc- 
tures and educational communications (e.g., Coca Cola's 
HIV/AIDS workplace program). 

• When engagement in this practice can add an important point of 
differentiation to target markets in a crowded, undifferentiated 
marketplace (e.g., Nike offering a line of products made with en- 
vironmentally friendly materials). 

• When there are opportunities for alliances that will strengthen the 
brand's positioning (e.g., Motorola's participation in EPA's waste re- 
duction program). 

• When the adoption of the practice could actually improve product 
quality or performance, providing increased value and points of dif- 
ference (e.g., compact fluorescent light bulbs that use less energy 
and last longer). 

• When investments or changes in practices will strengthen relation- 
ships with suppliers or distributors (e.g., Starbucks providing training 
and economic opportunities to ensure a long-term sustainable 
supply of excellent coffee). 




Based on experiences of professionals, including ones contributing to 
cases in this chapter, major decisions involved in adapting and imple- 
menting socially responsible business practices will focus on the process 
of carefully selecting the social issue that the initiative will support; de- 
veloping integrated, strategic plans for implementation; and setting and 
tracking measurable goals. 

As indicated in many of the case examples, most recommend that 
business needs should be identified first. There might be an emerging or cur- 
rent objective for reduced operating costs, improved supplier relations, or 
reduced regulatory oversight, or there may be important marketing chal- 
lenges such as repositioning of the brand or standing out in an undifferen- 
tiated, crowded marketplace. Next, major social problems are identified 
that the company could contribute to through altered business practices 
and investments. As with other social initiatives, a cause should be se- 
lected that is substantial, consistent with company mission and values, and 
one that key publics care about. The actual initiative (business practice to 
be adopted or altered) is then selected based on an assessment of potential 
for meeting business objectives and contributing to the social cause. 

Experienced experts have also stressed the need for an integrated, 
planned approach for implementation, one involving and backed by execu- 
tive management. New or revised business practices should be supported 
through employee communications and any related needs for education 
and training. In many cases, there will need to be important changes to 
infrastructure to facilitate the adoption of new practices and to ensure 
more substance than rhetoric. 

And finally, encourage accountability by setting goals and establishing 
mechanisms for measuring, tracking, and reporting results. Many recom- 
mend developing communication plans that include publishing goals, re- 
porting on progress, and, in the event that goals are not met, identifying 
and then publishing corrective action plans to ensure continued com- 
mitment and progress toward the goal. 


To implement socially responsible business practice initiatives, a corpora- 
tion adopts and conducts discretionary business practices and investments 

234 Socially Responsible Business Practices 

that support social causes to improve community well-being and protect 
the environment. Key distinctions from other initiatives include a focus 
on activities that are discretionary; community is interpreted broadly; and 
community well-being can refer to health and safety, as well as psychologi- 
cal and emotional needs. 

Over the last decade there has been an apparent shift from adopting 
more responsible business practices as a result of regulatory citations, 
consumer complaints, and special interest group pressures, to proactive 
research exploring corporate solutions to social problems and incorporat- 
ing new business practices that will support these issues. Several factors 
may be contributing to this shift: evidence that socially responsible busi- 
ness practices can actually increase profits; a global marketplace with in- 
creased competition and consumer options; interest in increased worker 
productivity and retention; and increased visibility and coverage of cor- 
porate socially responsible (or irresponsible) activities. 

Most initiatives relate to altering internal procedures and policies, 
external reporting of consumer and investor information, making provi- 
sions for customer access and privacy, and making decisions regarding 
suppliers and facility and plant locations. 

Resultant financial benefits have been associated with decreased op- 
erating costs, monetary incentives from regulatory agencies, and in- 
creased employee productivity and retention. Marketing benefits are 
numerous as well, with the potential for increasing community goodwill, 
creating brand preference, building brand positioning, improving prod- 
uct quality, and increasing corporate respect. These activities also pro- 
vide opportunities to build relationships with external partners such as 
regulatory agencies, suppliers, and nonprofit organizations. 

Experts warn that corporate motives for new and more responsible 
business practices will be questioned, actions will be judged, and results will 
be scrutinized. Corporate managers encourage others to decrease skepticism 
and criticism by being preemptive; choosing an issue that meets a business 
as well as a social need; making a long-term commitment; building em- 
ployee enthusiasm; developing and implementing infrastructures to support 
the promise; and providing open, honest, and direct communications. 

Major decisions involved in adapting and implementing socially re- 
sponsible business practices will focus on the process of carefully select- 
ing the social issue that the initiative will support; developing 
integrated, strategic plans for implementation; and setting measurable 
goals and establishing plans for tracking and reporting results. 



Twenty-five Best Practices 
for Doing the Most Good for 
the Company and the Cause 

It is true that economic and social objectives have long been seen as dis- 
tinct and often competing. But this is a false dichotomy; it represents an 
increasingly obsolete perspective in a world of open, knowledge-based 
competition. Companies do not function in isolation from the society 
around them. In fact, their ability to compete depends heavily on the cir- 
cumstances of the locations where they operate. 

— Michael E. Porter and Mark R. Kramer 1 

This book has been written to support managers to choose, de- 
velop, implement and evaluate corporate social initiatives such 
that they will do the most good for the company and the cause. 
Its purpose is to help guide decision making in the area of corporate so- 
cial responsibility, resulting in efforts that do the most social, environ- 
mental, and economic good. It is, in the end, intended to help maximize 
the return on discretionary corporate investments in improving the qual- 
ity of life, with the hope that future participation in these efforts is in- 
creasingly satisfying. We discussed early on that it is no longer just 
acceptable that the corporation does well by doing good. It is expected. 


236 Twenty-five Best Practices for Doing the Most Good 

Then what can we conclude is good 1 . 

For the cause that is supported by corporate social initiatives, good is 
the increased realization of several potential benefits. The six corporate 
initiatives featured in this book have been seen to provide multiple ben- 
efits for a cause and for the charities supporting these causes. As many re- 
cipients of corporate contributions to their causes have indicated, these 
initiatives can: 

• Enhance public awareness and concern for the cause through support 
of promotional communication efforts (e.g., Ben 6k Jerry's cam- 
paign to increase concern about global warning). 

• Support fundraising by encouraging customers and others in the com- 
munity to contribute to causes (e.g., British Airways' campaign that 
collects pocket change from passengers for children's charities). 

• Increase community participation in cause-related activities by provid- 
ing promotional support and use of distribution channels (e.g., 
PETsMART periodically providing space in their stores for adopt- 
ing animals). 

• Support efforts to influence individual behavior change and industry 
business practices that improve public health (e.g., Coca-Cola 
Africa Foundation's HIV/AIDS workplace initiative) and safety 
(e.g., FedEx's SAFE KIDS Walk This Way program) and protect 
the environment (e.g., Best Buy's effort to support recycling of 
used computers). 

• Provide increased funds and other resources that help charities and 
cause efforts make ends meet and/or expand efforts (e.g., General 
Mills providing grants for projects that improve youth nutrition 
and physical activity levels). 

• Increase the number of volunteers donating their expertise, ideas, 
and physical labor to a cause by promoting volunteerism in the 
community and supporting employee volunteer efforts (e.g., Shell 
employees helping with coastal cleanups). 

At the same time, we have seen through examples and perspectives 
provided by corporate executives how these efforts to give back to the 
community also give back to the company. They can help: 

• Build a strong corporate reputation, as key constituents observe ac- 
tions that support promises of good corporate citizenship and re- 
sponsibility (e.g., Kraft's initiative to to help address obesity). 

Twenty-five Best Practices for Doing the Most Good 


Contribute to overall business goals by opening up new markets, for 
example, or providing opportunities to build long-term relation- 
ships with distributors and suppliers (e.g., Starbucks' initiative to 
support farmers who provide shade-grown coffee). 

Attract and retain a motivated workforce by being known for in- 
volvement in the community, and for providing employees an op- 
portunity to become involved in something they care about and 
to receive corporate support and recognition for doing so (e.g., the 
personal stories shared about volunteering by FedEx Company 
employees that "changed their lives"). 

Reduce operating costs by adopting new socially responsible busi- 
ness practices, such as procedures that increase efficiency and re- 
duce costs for materials (e.g., Cisco saving several million dollars 
each year through energy saving construction and implementa- 
tion of energy saving guidelines). 

Reduce regulatory oversight by working closely with regulatory agen- 
cies to meet or exceed guidelines, thereby increasing confidence and 
building strong relationships for the future (e.g., Motorola's recogni- 
tion for participation in the EPA's waste reduction program). 

Support marketing objectives by building traffic, enhancing brand po- 
sitioning, creating product differentiation, reaching niche markets, 
attracting new customers, and increasing sales, especially when 
products and services are an integral part of program efforts (e.g., 
Home Depot's initiative to support water conservation, including 
connections of products to specific conservation practices). 

Build strong community relationships with organizations and agen- 
cies that can provide technical expertise, extend campaign 
reach by providing access to members and donors also support- 
ing the cause; and offer credible endorsement for the corpora- 
tion's effort and commitment (e.g., Aleve's partnership with the 
Arthritis Foundation, including sponsorship for the nationwide 
Arthritis Walk). 

Leverage current corporate social initiative efforts and investments by 
including additional ones that further connect the company to 
the cause, thus increasing chances for both an impact on the so- 
cial problem and a greater return on current investments (e.g., 
Dell adding a volunteer component to its recycling initiative by 
involving employee volunteers in recycling events). 

238 Twenty-five Best Practices for Doing the Most Good 


Social needs seem endless and the options to provide support over- 
whelming. At a global as well as local level, we should have no problem 
finding a cause that needs corporate support, from those that help ensure 
basic needs are met in the community to those that improve health, pre- 
vent injuries, increase public involvement, and protect the environ- 
ment. The problem is in choosing well among the options. The 
following six practices help guide strategic decision-making. 

1. Choose Only a Few Social Issues to Support. 

Many executives interviewed for this book stressed the importance of 
picking only a few major social issues as a focal point for corporate citi- 
zenship and giving. Washington Mutual shared that their strategic focus 
on improving K-12 education had been in place for more than 75 years, 
since their beginning in 1927. It is clear that Avon is on a crusade for 
women's health and REI has a passion for environmental protection. 
The benefits of this practice seem obvious now and are reminiscent of 
benefits a corporation realizes when it selects target markets and devel- 
ops entire marketing strategies to win them over. It increases chances 
that the company can actually have an impact on a particular social ini- 
tiative, as resources are focused and multiple initiatives aimed at one 
cause. It makes it easier to "say no" to others, as the company can point 
to their priority areas for giving. It increases chances that the company 
will be able to develop long-term, often coveted relationships with 
strong desirable partners, as they, too, will be looking for a partner will- 
ing to provide significant resources and make a long-term commitment. 
Finally, targeting resources in a few areas increases chances that the cor- 
poration will be connected to the cause and will therefore leverage po- 
tential brand positioning and other desired marketing benefits. 

2. Choose Issues That Are of Concern in the Communities Where 
You Do Business. 

Improving communities where facilities are located, where future work- 
forces will be recruited, and where customers live can support both social 
and economic goals. As noted earlier, The Home Depot demonstrated this 

Best Practices for Choosing a Social Problem to Alleviate 239 

practice when it focused on the issue of water conservation in a commu- 
nity threatened by drought; and Levi Strauss was one of the first to step 
forward in the San Francisco Bay area to support HIV/AIDS prevention. 
American Express, with over 4,000 employees displaced as a result of the 
September 1 1 attacks, was a natural to help revitalize downtown Manhat- 
tan. And Kraft committed to helping reduce obesity in their market- 
place — our nation. Focusing on issues of concern in these communities 
and for those living in them increases chances that efforts will be noticed 
and valued among key publics. It adds credibility and believability to stan- 
dard statements in annual reports and sales catalogues proclaiming, "We 
believe in giving back to the communities where we do business." It may 
also help solve real problems facing a business, such as ensuring a future 
trained workforce, quality suppliers, and even a robust economy. 

3. Choose Causes That Have Synergy with Mission, Values, 
Products, and Services. 

Just as we develop and offer products and services that are consistent 
with our company's mission and then promote and deliver them in a way 
that reflects our company's values, we should also choose areas of focus 
for social initiatives that have the same synergy. Often the choice will be 
obvious, as it must have been for Crest when its leaders learned more 
about the "silent epidemic" of oral disease in America, especially among 
low-income children. Similarly, it must have been an obvious choice for 
life vest manufacturer Mustang Survival when it was approached by a re- 
gional children's hospital to support a campaign to help reduce the num- 
ber of drownings among children. For AT&T, a partnership with the 
American Red Cross that included donations of phones to support the 
organization's disaster relief efforts seems easy, as does General Motors' 
dealership support of car seat safety checks. When corporations con- 
tribute to causes that make sense, we find consumers are less suspicious, 
investors are less likely to judge the effort as peripheral, and employees 
are more likely to have the needed expertise and passion to volunteer. 

4. Choose Causes That Have Potential to Support Business Qoals: 
Marketing, Supplier Relations, Increased Productivity, 

Cost Reductions. 

Subject experts such as Michael Porter of Harvard Business School and 
Mark Kramer, managing director of the Foundation Strategy Group, say 

240 Twenty-five Best Practices for Doing the Most Good 

this simultaneous support for business goals is true strategic philanthropy. 
"It is only where corporate expenditures produce simultaneous social and 
economic gains that corporate philanthropy and shareholder interests 
converge. ... It is here that philanthropy is truly strategic." 2 Starbucks 
was clear that support for shade-grown coffee was important for the envi- 
ronment, but it also ensures a long-term supply of quality coffee. Safeco 
realized marketing benefits and potential cost reductions through its 
partnerships with fire departments in communities where home owners 
(customers and target markets for many of its insurance products) were 
provided with informational materials on helping prevent or mitigate 
fire damage. And Chiquita saved millions of dollars a year by using fewer 
agrichemicals and from its pallet recycling program. In each of these ex- 
amples, the corporation chose to support a social issue that had potential 
for contributing to business goals, as well as a connection to the com- 
pany's mission, values, communities, and products and services. 

5. Choose Issues That Are of Concern to Key Constituent Qroups: 
Employees, Target Markets, Customers, Investors, and 
Corporate Leaders. 

Support for social initiatives will be leveraged when the cause is also 
one near and dear to our key publics, both internal and external. 
LensCrafter's successful collection of used eyeglasses is a reflection of 
the involvement and enthusiasm that customer-contact staff have for 
giving the "Gift of Sight." Parents concerned with SIDS were most 
likely grateful for the just-in-time reminder from Pampers to place an 
infant on its "Back to Sleep." Potential customers for Silk Soymilk may 
be motivated to choose this product from the lineup on the shelf when 
they hear of the parent company's commitment to using 100 percent 
wind power for all of its operations. Investors were perhaps encouraged 
if they read reports from Motorola that their new packaging reuse sys- 
tems were expected to save several million dollars each year. And cor- 
porate leaders are probably pleased, perhaps even relieved, when they 
receive reports on employee volunteer efforts such as Shell's coastal 
cleanup effort in Australia. The successes of most social initiatives re- 
viewed in this book have clearly relied on the connection and reso- 
nance the efforts have with one or more of these key constituent groups. 
Such connection should therefore be factored into decisions on what 
causes to support. 

Best Practices for Selecting a Social Initiative 


6. Choose Causes That Can Be Supported over a Long Term. 

Achieving maximum benefits for the company (and the cause) often de- 
pends on long-term commitments, frequently considered three or more 
years. As with most communication efforts, it takes numerous exposures to 
messages and events before an effort is noticed and before targeted audi- 
ences for fundraising efforts and especially behavior change campaigns will 
act. It also most often takes a long period of time to make a dent in a social 
problem, whether supporting medical research for cancer cures or reducing 
levels of toxic emissions from manufacturing plants. Long-term commit- 
ments can also be more economical, as early years in program efforts are of- 
ten consumed with steep learning curves and coordination with cause 
partners, and efforts get more efficient in subsequent years. And finally, 
those companies who stick with the cause over the years are more likely to 
be able to own it, as does The Body Shop after staying the course with 
campaigns 'Against Animal Testing" in the cosmetic industry. Even if a 
competitor decided to move in on this point of differentiation, many con- 
sumers are likely to know that The Body Shop was there first. 

Those who practice this principle ask themselves and their partners 
whether this effort will be one that will be a social concern over the next 
several years; whether it will have continued connection to the com- 
pany's mission, values, products, and services; and whether key publics 
will continue to care. Given these criteria, it seems it would make sense 
for Lysol to make a long-term commitment to Keep America Beautiful; 
for Target to continue to help local public schools, for Aleve to continue 
sponsoring walks for the Arthritis Foundation; for ConAgra to help feed 
millions of hungry children in our country; and for Microsoft to "unleash 
the potential in every person, family, and business" by providing people 
with access to technology and the education to put it to use. 


Once a social issue has been chosen (ideally as an area of focus for the 
company), all six initiatives should then be evaluated for potential to 
contribute to the cause, as well as to the company. Table 9. 1 summarizes 
major strengths associated with each initiative, both for the company 
and for the cause. As the following guidelines suggest, managers will 

Table 9.1 Major Potential Benefits from Corporate Social Initiatives 





\ A /j v\ rr 



L niLuninropy 

v uiwnieenng 



For the Cause 


awareness and 
concern for the 

Major strength 

Major strength 

Major strength 

Support for 

Major strength 

Major strength 


participation in 

Major strength 

Major strength 


Major strength 

Changes in 

public behavior 

Major strength 

Increased funds 
and other 

Major strength 

Major strength 

Major strength 


For the Company 

Build strong 

Major strength 

Major strength 

Major strength 


Major strength 

Contribute to general 
business goals 

Major strength 

Major strength 

Attract and 

retain motivated 

Major strength 

Major strength 

Major strength 


Major strength 


operating costs 

Major strength 

Reduce regulatory 

Major strength 

Support marketing 

Major strength 

Major strength 

Major strength 

Build strong 

Major strength 

Major strength 

Major strength 

Major strength 


Major strength 

Leverage current 
corporate social 

Major strength 

Major strength 

Major strength 

Major strength 


Major strength 

244 Twenty-five Best Practices for Doing the Most Good 

evaluate initiatives relative to their potential for contributing to specific 
business and cause-related objectives and goals. These best practices also 
incorporate additional considerations based on perspectives of managers 
interviewed for this book, as well as academic and other experts on cor- 
porate social responsibility. 

1. Select Initiatives That Best Meet Business Objectives and Qoals. 

As illustrated with numerous examples throughout this book, corporate in- 
volvement in social initiatives can support a variety of business objectives 
and goals. At this phase in the planning process, managers should identify 
priority needs that might be met through supporting cause efforts, consider- 
ing financial, marketing, corporate reputation, operational, and employee- 
related goals. Premera Blue Cross's interest in reducing costs associated with 
upper respiratory infections, for example, was one factor that guided their 
decision to partner with others to support a cause promotion initiative that 
would increase public awareness and concern with the overuse of antibi- 
otics, and a social marketing initiative to encourage physicians to practice 
more conservative measures when prescribing antibiotics. 

2. Select Initiatives That Meet Priority Needs for the Cause. 

Initiatives that have the potential to meet business objectives and goals 
are then evaluated against priority needs that have been identified for a 
cause, zeroing in on those with the most perceived potential to meet 
both needs. In the case described in Chapter 5 where Safeco (a personal 
and business insurance company) decided to support a social marketing 
initiative, Safeco's first offer to the fire department in Oregon was actu- 
ally to donate money to help purchase firefighting equipment — a philan- 
thropic initiative. Further discussions with the fire marshal in Oregon, 
however, shifted the initiative to supporting a social marketing campaign 
that would persuade home owners to establish defensible space around 
their house. The reasons were expressed well by the fire marshal, who 
claimed, "A new piece of equipment might save one more home. But to 
really save homes, individuals have to take personal responsibility for 
their property before the fire." 3 This social marketing initiative has the 
potential to do the most good for Safeco, supporting marketing goals and 
potential cost reductions, as well as for the prevention of wildfires in this 
region and in others around the country. 

Best Practices for Selecting a Social Initiative 


3. Select Multiple Initiatives for a Single Cause, Adding Ones 
Missing for Current Cause Efforts. 

Just as skilled marketers practice a fundamental principle of integrated 
marketing communications, those involved in selecting social initiatives 
can benefit from a similar practice. In the case of an integrated market- 
ing approach, a company's communications and media channels are co- 
ordinated so that messages regarding the company and its products are 
"consistent, clear, and compelling." 4 Similarly, when a company engages 
in a variety of initiatives to support a chosen social issue, it increases the 
likelihood that the company will be clearly associated with the cause, 
and at the same time will be able to provide more support for the cause 
than it might through just one initiative. Ben 6k Jerry's global warming 
campaign exemplifies this practice. As noted in Chapter 3, one compo- 
nent of this effort was a cause promotion to increase awareness of the 
threats of global warming. The effort was integrated into other initiatives 
as well. It included a cause-related marketing effort, where a percentage 
of sales of the One Sweet Whirled ice cream flavor have gone to organi- 
zations that are working to fight global warming; a social marketing com- 
ponent, where consumers were encouraged to send letters to congress 
and to make personal pledges to reduce their carbon dioxide emissions; a 
philanthropic initiative, where grants have been provided for efforts 
aimed at addressing global warming; a community volunteer component, 
in which employees are encouraged to "park your car for a day" and find 
alternative transportation to work; and socially responsible business 
practices. One example of the latter was announced in August 2002: 
The company would offset one year's carbon dioxide emissions from its 
Vermont ice cream production facilities by supporting the construction 
of a new wind turbine in South Dakota. 5 

4. Select Initiatives Representing the Most Potential for Strong 
Community Partners. 

Companies should also evaluate potential initiatives relative to their 
ability to create relationships with partners in the nonprofit as well as 
public sector, ones that will add resources as well as credibility to the ini- 
tiative. As we saw, Crest's interest in improving oral health, especially 
among children in underserved minority communities, resulted in a 
cause promotion and social marketing partnership with the Boys 6k Girls 
Clubs of America that was applauded by the U.S. Surgeon General. And 

246 Twenty-five Best Practices for Doing the Most Good 

Johnson & Johnson's campaign to enhance the image of the nursing pro- 
fession built relationships with key publics for the company, including 
health care organizations and nursing associations around the world. 

5. Select Initiatives Where You Have a History of Experience. 

Each of the six initiatives has its own unique set of keys to success, as 
well as challenges. One consideration when choosing among potential 
new initiatives is the company's track record and experience in develop- 
ing and managing prior initiatives, providing an opportunity to capitalize 
on lessons learned and to be up and running with greater efficiencies. 
American Express's most recent campaign to revitalize lower Manhattan 
no doubt benefited from the company's experience in cause-related mar- 
keting efforts over the past two decades. And the experience that Fannie 
Mae has had over the past 15 years with sponsoring an annual employee 
volunteer effort in the Washington Metropolitan area to "Help the 
Homeless" has enabled it to grow the program from raising $90,000 the 
first year to $6.2 million in its 15th year. 6 

6. Select Initiatives That Will Leverage Current 
Abundant Resources. 

Consider which initiative(s) will leverage current resources, especially 
those that are both highly valued by the cause and underutilized by the 
company or that can be provided at low cost. Resources to support cause 
promotions, for example, may simply require additional messages on ex- 
isting communications (e.g., PARADE magazine's feature story to raise 
awareness and funds for child hunger relief). Cause-related marketing ef- 
forts can often piggyback on current paid product advertising (e.g., 
LYSOL®'s campaign that included product coupons promising donations 
from revenues would go to Keep America Beautiful). Social marketing 
efforts can benefit from existing distribution channels and product label- 
ing (e.g., food growers' support for the 5-A-Day program that includes ef- 
forts such as stickers on fruit and the 5-A-Day logo on vegetable 
packages). Philanthropic initiatives can include donation of existing re- 
sources (e.g., Microsoft providing technology skills training for disadvan- 
taged individuals through community-based technology and learning 
centers, including grants of software). Community volunteering efforts 

Best Practices for Developing Social Initiative Programs 


can be tied to existing research and development activities (e.g., 
Hewlett-Packard working side-by-side with citizens in underserved com- 
munities, an effort that generated new product ideas and helped build 
new markets for the company). And socially responsible business prac- 
tices can be incorporated when designing new facilities and revamping 
current operational procedures (e.g., Cisco's new facility design to sup- 
port energy conservation). 


Many of the best practices compiled here for developing corporate social 
initiative programs have been formulated in response to the concerns 
and challenges identified by those sharing their experiences in this book, 
as well as academic and subject experts. We heard of concerns associated 
with appropriate visibility for the corporation's efforts, coordination with 
cause partners, staff time for involvement and administration, potential 
need for external expertise, expenses for promotions, anticipated public 
skepticism, and tracking resource expenditures. Major concerns associ- 
ated with each initiative are summarized in Table 9.2, and the following 
descriptions of best practices are intended to minimize the potential risks 
and costs associated with development processes and implementation of 
each initiative. 

1. Form Internal, Cross-Functional Teams to Develop Plans. 

Program plans often have the most impact and are most efficiently ad- 
ministered when developed by teams with representatives from various 
departments within the company, teams that may include those from 
marketing, finance, operations, facilities management, human resources, 
and executive administration. This is especially important at the begin- 
ning of campaign planning, when program objectives and goals are es- 
tablished, as such teamwork can be critical to building internal support 
for activities as well as setting realistic expectations for program out- 
comes. Cisco shared its philosophy, relative to designing and building 
environmentally sensitive facilities, that "planning it right" included 
combining people who specialized in facility design with people who 

Table 9.2 Major Potential Concerns in Undertaking Initiatives 






Business Practices 

Visibility for corporate 
efforts can easily 
be lost. 

Major potential 

Major potential 


Major potential 

Coordination with 
cause partners can 
be time consuming. 

Major potential 


Major potential 

Staff time and 
involvement can 
be significant. 

Major potential 


Major potential 


Efforts may require 
external expertise. 

Major potential 

Major potential 

expenses can be 

Major potential 


Major potential 

Consumers may be 
skeptical of corporate 
motivations and 

Major potential 


Major potential 

Tracking resource 
expenditures and 
valuecan be difficult 
and expensive. 

Major potential 


Best Practices for Developing Social Initiative Programs 


have day-to-day working familiarity with the buildings. Effective plan- 
ning required collaboration between groups with different expertise, in- 
cluding those from facility design, operations, and engineering. 

2. Include Community Partners in Plan Development. 

Similarly, involving community partners early in the planning process 
will maximize program effectiveness and efficiency. Partners should be 
included in establishing program goals and objectives, laying the founda- 
tion for strategic solutions, and aligning expectations regarding out- 
comes. They should be included in developing strategic communication 
plans, especially decisions regarding target audiences, key messages, and 
key media channels, a process that will help avoid costly and time-con- 
suming reworks of promotional materials. Partner involvement in craft- 
ing implementation plans will help avoid misunderstandings and 
confusions regarding roles and responsibilities. The water conservation 
campaign that Home Depot participated in, for example, required strate- 
gic coordination with all community partners, including more than 25 
local water providers, a local news channel, and a communications firm. 

3. Establish Clear Objectives and Measurable Qoals (Outcomes) for 
the Company. 

The often difficult and elusive task of program evaluation can be eased 
considerably by taking time in the program planning process to establish 
clear objectives and measurable goals for the initiative, ones that will 
then be used to evaluate program success. Corporate objectives may in- 
clude those related to business needs (e.g., reduce energy costs in new fa- 
cilities), marketing needs (e.g., increase share of toddler's life vest sales), 
employee-related needs (e.g., attract talented, motivated employees) or 
needs related to corporate reputation and goodwill (e.g., reduce levels of 
toxic emissions). Goals, in this typology, are ideally measurable, specific, 
realistic, and time-oriented. 

4. Establish Clear Objectives and Measurable Qoals (Outcomes) for 
the Cause. 

This same practice holds true for the cause as well. In Athena's story, for 
example, we learned that the company's CEO had established clear ob- 

250 Twenty-five Best Practices for Doing the Most Good 

jectives to raise money for women's cancer research and specific measur- 
able goals to capture at least 5 percent of the bottled market in the 
Northwest, which would mean a possible donation of $ 1 million a year 
for research and education. 

5. Develop a Communications Plan. 

As we learned, opinions regarding corporate recognition for social initia- 
tives vary significantly. Some recommend "don't be shy" and others have 
a company policy to "let others do the talking." Regardless of philo- 
sophic perspectives on corporate recognition, developing a communica- 
tions plan for the initiative is a best practice. Often it will necessitate 
separate strategies for several key audiences: target markets for the initia- 
tive; external publics, such as investors, regulatory agencies, and suppli- 
ers; and employees and other internal stakeholders. Communication 
plans should identify traditional strategic components including commu- 
nication objectives, key messages, and key media channels for each of 
the targeted audiences. Communication objectives should signal desired 
audience outcomes (e.g., increases in awareness, concern, participation, 
and/or individual behavior change). Including a call to action as a key 
message has been show to assist tracking and evaluation efforts, and uti- 
lization of existing media channels and distribution outlets can help re- 
duce promotional costs. 

6. Identify and Plan for Additional Strategic Elements. 

Most initiatives will also include additional strategic elements beyond 
communications that are incorporated into the planning process. Cause 
promotions often rely on employee involvement, benefiting from a coor- 
dinated effort, such as the one that was key to the Wal-Mart initiative to 
raise money for Children's Miracle Network. Cause-related marketing 
initiatives involve decisions regarding product ties, timelines, and more 
complex agreements with cause partners, as must have been the case 
with Comcast's cause-related marketing effort to raise money for Ronald 
McDonald House Charities and to coordinate this effort with coupons 
for McDonald's products. Social marketing initiatives often involve sup- 
port for public engagement, as illustrated by Dell's printer recycling ini- 

Best Practices for Developing Social Initiative Programs 


tiative that included providing prepaid shipping labels and arranging for 
free pick up of outdated printers. Philanthropic planning efforts will in- 
volve deliberation over specific forms of giving, and then development 
of programs for implementation, as we can imagine must have taken 
place for General Mills in selecting and administering grants for im- 
proved nutrition and physical activity. Community volunteering will 
also entail selecting types of employee support and then, in many cases, 
developing systems such as the volunteer match programs offered for 
AT&T Wireless employees. And socially responsible business practices 
can require plans for significant changes as they may involve new work 
processes, negotiations with suppliers, and decisions on facility design 
and locations. 

7. Qet Senior Management Buy -In. 

Most managers seeking support for corporate social initiatives recog- 
nize and report that executives express a desire to give back and to 
care for the communities that support their business. The challenge is 
in getting approval for what will be supported and for how much. Ear- 
lier in this chapter, a best practice of involving senior management in 
choosing causes for focus and agreeing on types of initiative to support 
the cause was emphasized. The same principle holds true for the 
development of implementation plans, as this is when important deci- 
sions regarding budgets will be made, staff resources will be commit- 
ted, and current business practices may be altered. Planners most 
likely recognize they need to be prepared for tough questions and 
straight answers. 

Agreement is especially important prior to finalizing program objec- 
tives and goals, budgets, and resource allocation. Some executives are re- 
luctant to make a pledge, at the beginning of the fiscal year, of a certain 
amount of money for corporate social initiatives that can be tied to earn- 
ings. Curt Weeden offers this perspective: "CEOs need to accept the 
premise that the level of social investing is largely a by-product of a com- 
pany's historic profitability. In a nutshell, here's how it works. Corpora- 
tions invest a percentage of an average of the pretax earnings of their 
previous three years. There is an emergency brake that can be pulled if 
needed — the CEO retains the power to stop social investing in its tracks 
if the current year's profits are in jeopardy." 7 

252 Twenty-five Best Practices for Doing the Most Good 


The importance of evaluating efforts and calculating returns on corpo- 
rate social investments is easily understood. Most recognize it is the right 
thing to do in order to improve future programs as well as to fulfill com- 
mitments for responsible reporting to stakeholders. We know we should 
practice the same rigorous disciplines that govern our business invest- 
ments. The challenge is in doing it. Of all best practices related to corpo- 
rate social initiatives, evaluation strategies remains the least fully 
developed. The following six best practices suggest at least a structure for 
identifying data collection needs and a framework for organizing infor- 
mation into meaningful categories, those that are output- oriented and 
those that are outcome-oriented. 

1 . Determine Purpose of Evaluation. 

As with most research-related projects, we begin with the end in mind, an- 
swering the question "What will the information be used for?" Options 
range from wanting to improve future efforts, to needing to report back to 
our partners and stakeholders, to being able to calculate a specific return on 
our investment, to knowing when we have reached an optimal giving level 
where further investments have a decreasing rate of return for the corpora- 
tion as well as for the cause. The answer for many, we suspect, is that we 
want answers for all of these. But the question should be asked, as resources 
needed to gather this information have varying monetary implications. 

2. Measure and Report Resource Outputs. 

The focus at this point is on resources that the corporation contributes 
to the initiative and the total monetary value of those resources. Basic 
categories will include cash contributions as well as (ideally) the mone- 
tary value of in-kind donations of products and services, staff hours, and 
retail space. It is important to stress that information gathered from this 
effort is not intended to measure the impact of these investments. It is to 
establish a total monetary value for the investment, which will then be 
used as a base to evaluate the efficiencies and actual costs associated with 
outcomes produced as a result of these output levels. 

Methodologies for collecting this information will include internal 
record keeping (e.g., number of staff hours), financial reports (e.g., cash 

Best Practices for Evaluating Efforts 


contributions), and information provided by cause partners and public 
relations and advertising firms. 

In recent years, progress has been made in developing measurement 
practices and standards that will assist corporations in calculating and re- 
porting the totality of their giving programs. In 2002, for example, the 
Committee to Encourage Corporate Philanthropy entered into a strate- 
gic partnership with the American Productivity and Quality Center, the 
Center for Corporate Citizenship at Boston College, and the Corporate 
Citizenship Company, to build a framework of definitions, processes, and 
systems that would more effectively measure corporate giving. Included 
in this effort is the development of a tool kit that will provide users with 
global standards, measurement frameworks, management tools, and col- 
laborative networks. The intent is to support companies to "effectively 
and completely capture and communicate their contributions to society 
according to a common framework." 8 

3. Measure and Report Outcomes for the Company, Based on 
Initiative Objectives and Qoals. 

Focus now turns to measuring outcomes associated with corporate out- 
puts, with an emphasis on measurement of accomplishments relative to 
corporate objectives and goals established in the early planning stages. 

Outcomes associated with general business goals and objectives would 
include tracking and reporting on desired accomplishments most often re- 
lated to enhanced corporate image, strengthened stakeholder percep- 
tions, reductions in operating costs, increases in employee satisfaction, 
reduction in expenditures related to employee recruitment and turnover, 
reduction in regulatory oversight, and receipt of any additional incentives 
or grants for meeting environmental or community impact guidelines. 

Outcomes associated with marketing goals and objectives would include 
tracking and reporting on levels of awareness of the corporation's involve- 
ment in the initiative; enhancements to brand identity; and increases in 
customer loyalty, sales, traffic, and media exposures achieved through the 
initiative. Special efforts should be made to collect information on total 
levels of exposure created by corporate expenditures (e.g., total impres- 
sions achieved through paid media, publicity, material distribution, spe- 
cial events, and web site visits) and the monetary value associated with 
this. A cause promotion initiative, for example, that included a direct 
contribution of $35,000 for paid advertising may have actually received 

254 Twenty-five Best Practices for Doing the Most Good 

$75,000 worth of media exposure due to qualifications by the charity for 
nonprofit rates, often at a 50 percent discount. 

Methodologies associated with measuring these outcomes are often 
more complex and more expensive than those required for assessing out- 
puts. Some of this information can come from internal records and exist- 
ing tracking systems (e.g., sales data) and reports from external agencies 
(e.g., broadcast stations) and community partners (e.g., a charity who re- 
ports on the number of people who stopped by their booth sponsored by 
the corporation at a health fair). However, a majority of these factors 
will require custom consumer surveys, with sample sizes large enough to 
be representative and methodologies that can be replicated in the future. 
They may even require establishing a baseline measure, a measure at spe- 
cific campaign milestones, and a post survey. 

Once outcomes are quantified, attempts should be made to deter- 
mine return on investment. As a simplistic example, a corporation that 
contributed $50,000 for promotional expenditures related to a charity 
walk that hypothetically generated 500,000 impressions in the market- 
place would assess the cost for each impression at 10 cents, and then 
compare this cost with prior similar efforts. A cause-related marketing ef- 
fort that generated 1,000 more product sales than in prior comparable 
years and increased awareness of the featured product by 25 percent 
among target markets would be evaluated against total contributions 
made to the initiative and, again, compared with prior similar efforts. 

As noted earlier, this discipline is in its early stages. Managers are en- 
couraged to become more rigorous in tracking, building historic data- 
bases, and creating metrics to guide evaluation and decision making. 

4. Measure and Report Outcomes for the Cause, Based on Initiative 
Objectives and Qoals. 

As with outcomes for the corporation, of interest here are accomplish- 
ments relative to objectives and goals that were established earlier for 
the cause and/or charity, ones specifically supported by the corporation's 
involvement in the initiative. Basic measures may include one or more 
of the following, most often supported by cause promotions and cause-re- 
lated marketing initiatives: 

• Changes in awareness of the social issue. 

• Changes in levels of concern for the social issue. 

Best Practices for Evaluating Efforts 


• Number of volunteers recruited by the initiative and associated 

• Amount of funds raised for the charity or issue. 

In some cases, outcomes may be expressed in more tangible terms, 
such as outcomes associated more often with social marketing initiatives, 
corporate philanthropy, community volunteering, and socially responsi- 
ble business practices. Examples that could be connected to a specific 
corporate initiative include the following: 

• Number of children fed in after-school programs. 

• Number of homeless people sheltered. 

• Rises in test scores. 

• Tons of waste diverted from landfills. 

• Reduction in toxic emissions. 

• Number of low-flow toilets installed. 

• Number of computers recycled. 

• Number of families provided a home away from home while their 
children were in hospitals. 

• Increase in number of toddlers with life vests on a specific beach. 

• Number of home owners who took recommended steps for fire 

This measurement effort should be conducted in cooperation with 
cause partners. Ideally, the information is collected by others and then 
reported to the corporation. Corporate managers are encouraged to ne- 
gotiate for this arrangement when establishing agreements with non- 
profit and public agency partners. 

5. Monitor Status of Social Issues That Initiatives Are Supporting. 

Managers are encouraged to put systems in place to periodically check 
on the current status of the social conditions being supported by their 
initiatives (e.g., number of new cases of HIV in the past year). Most 
recognize that impact on social problems takes time and that many fac- 
tors beyond a corporation's social initiative will contribute to alleviat- 
ing problems. Given the ideal of a long-term commitment by the 

256 Twenty-five Best Practices for Doing the Most Good 

corporation to a social issue, however, it follows that a best practice 
would be to monitor changes and implications of these changes for fu- 
ture social investments. 

6. Allocate Adequate Resources for Measurement and Reporting. 

In the end, the major challenge associated with evaluation of corporate 
social initiatives and calculating returns on investments is an economic 
one. An ideal budgeting scenario would be to assess costs for evaluation 
efforts based on agreed-upon purposes and then to present this total as a 
proposed budget. In reality, this draft amount will likely be adjusted 
based on current financial considerations and priorities. Managers are 
then encouraged to explore less costly but still valuable methodologies, 
such as shared cost studies and ad hoc surveys. 

Table 9.3 summarizes the strengths and concerns involved in the six 
types of corporate social initiatives we have outlined. 


Choosing Social Issues to Support 

1 . Choose only a few social issues to support. 

2. Choose those that are of concern in the communities where you 
do business. 

3. Choose issues that have synergy with mission, values, products, 
and services. 

4. Choose issues that have potential to support business goals: mar- 
keting, supplier relations, increased productivity, cost reduc- 

5. Choose issues that are of concern to key constituent groups: em- 
ployees, target markets, customers, investors, and corporate 

6. Choose issues that can be supported over a long term. 

Selecting Initiatives to Support Social Issues 

7. Select initiatives that best meet business objectives and goals. 

8. Select initiatives that meet priority needs for the cause. 

Summary Comments for Best Practices 


9. Select multiple initiatives for a single cause, adding ones missing 
for current cause efforts. 

10. Select initiatives representing the most potential for strong 
community partners. 

1 1. Select initiatives where you have a history of experience. 

12. Select initiatives that will leverage current abundant resources. 

Developing and Implementing Program Plans 

13. Form internal, cross-functional teams to develop plans. 

14. Include community partners in plan development. 

15. Establish clear objectives and measurable goals (outcomes) for 
the company. 

16. Establish clear objectives and measurable goals (outcomes) for 
the cause. 

17. Develop a communications plan. 

1 8. Identify and plan for additional strategic elements. 

19. Get senior management buy- in. 

Evaluating Efforts 

20. Determine purpose of evaluation. 

21. Measure and report resource outputs. 

22. Measure and report outcomes for the company, based on initia- 
tive objectives and goals. 

23. Measure and report outcomes for the cause, based on initiative 
objectives and goals. 

24. Monitor status of social issues that initiatives are supporting. 

25. Allocate adequate resources for measurement and reporting. 


The final and perhaps most important advice offered by a vast major- 
ity of those we interviewed is to take time to develop a formal docu- 
ment that establishes written corporate guidelines for social initiatives, 

Table 9.3 Summary of Strengths to Maximize and Concerns to Minimize 

Major Strengths to Maximize 

Major Concerns to Minimize 



Builds corporate reputation 


Visibility for corporate efforts can easily be lost. 



Attracts and retains a motivated workforce 


Coordination with cause partners can be time 


Supports marketing objectives 



Builds strong community relationships 


Staff time and involvement can be significant. 

Leverages current corporate social initiatives 

Promotional expenses can be significant. 

Consumers may be skeptical of corporate motivations 

and commitment. 



Supports marketing objectives 


Coordination with cause partners can be time consuming. 



Builds strong community relationships 


Staff time and involvement can be significant. 


Leverages current corporate social initiatives 


Promotional expenses can be significant. 


Consumers may be skeptical of corporate 

motivations and commitment. 

Social Marketing 


Builds corporate reputation 


Coordination with cause partners can be time 


Contributes to general business goals 



Attracts and retains a motivated workforce 


Staff time and involvement can be significant. 


Supports marketing objectives 


Efforts may require external expertise. 


Builds strong community relationships 


Promotional expenses can be significant. 


Leverages current corporate social initiatives 


• Builds corporate reputation 


Visibility for corporate efforts can easily be lost. 

• Attracts and retains a motivated workforce 


Tracking resource expenditures and value can be 

• Builds strong community relationships 

difficult and expensive. 

• Leverages current corporate social initiatives 


• Builds corporate reputation 


Visibility for corporate efforts can easily be lost. 


• Attracts and retains a motivated workforce 


Staff time and involvement can be significant. 

• Builds strong community relationships 


Tracking resource expenditures and value can be 

• Leverages current corporate social initiatives 

difficult and expensive. 

Socially Responsible 

• Builds corporate reputation 


Visibility for corporate efforts can easily be lost. 

Business Practices 

• Contributes to business goals 


Efforts may require external expertise. 

• Attracts and retains a motivated workforce 


Consumers may be skeptical of corporate 

• Reduces operating costs 

motivations and commitment. 

• Reduces regulatory oversight 

• Builds strong community relationships 

• Leverages current corporate social initiatives lost 

260 Twenty-five Best Practices for Doing the Most Good 

guidelines that will inform and ease decision making regarding many 
of the twenty-five best practices presented in this chapter and will re- 
flect the unique history, culture, goals, markets, and strategies for your 

These guidelines should be developed (and updated at least every 
two to three years) by interdepartmental teams and should include sec- 
tions describing most of the following decisions: 

• Priority social issues to support. 

• Desired business outcomes from support of social initiatives. 

• Desired social and environmental outcomes from initiatives. 

• Preferred types of initiatives. 

• Guidelines for determining levels of contribution. 

• Preferred types of giving (e.g., cash versus in-kind donations ver- 
sus volunteering). 

• Ideal community partners. 

• Expectations regarding interdepartmental involvement in planning. 

• A planning template, especially for developing internal and exter- 
nal communication plans. 

• Philosophies regarding corporate visibility and recognition for efforts. 

• Expectations and plans for tracking, evaluation, and reporting. 

• Criteria for continued support. 

This document, or at least components of it, can then be shared with 
potential community partners, helping to establish early on corporate 
priorities and expectations. 

As always, executive management approval and enthusiasm for 
these guidelines will be critical to their usefulness. The ultimate sce- 
nario would be that they actually own the guidelines and embody a pas- 
sion for doing the most good, as exemplified by the CEO of Kenneth 
Cole Productions: 

What started organically as a personal effort and a contribution to 
the community as well as a business strategy has become our trade- 
mark. Our cause-related marketing is a process that starts with meet- 

Summary Comments for Best Practices 


ings at the beginning of every season, where we take inventory of 
what concerns us today and what we believe will still be important 
in a few months. ... In the absence of therapy, I rant, I rave, I even- 
tually exhaust myself, and then I listen to everyone else do the same 
thing. A quiet settles over the room as we ask ourselves how we can 
appropriately address what is on our minds. 

Kenneth Cole 9 



A Marketing Approach 
to Winning Corporate 
Funding and Support 
for Social Initiatives: 
Ten Recommendations 

If substantial financial resources are to be raised and sustained over a 
long period of time, it's essential that supportive partners, especially 
large corporate partners, get as well as give. To find the intersection of 
public interest and private interest that will work for your partners, be- 
gin by sitting down with them to learn about their needs before telling 
them about yours. What are their marketing and sales challenges? 
What specific public relations messages do they hope to convey? Who 
are their principal competitors and on what playing fields are they com- 
peting? How do they hope this partnership will be viewed by their em- 
ployee workforce? Then go back and brainstorm so that you can return 
to the table with creative ideas for vehicles that will both raise money for 
and increase awareness of your cause, but will also meet the business 
needs of your partner. ' 

— Bill Shore, founder and CEO 
of Share Our Strength 


Recommendation I 


We think Bill Shore's advice is right on, as it reflects a customer- 
oriented approach to the exchange process, one that has the 
best chance for securing corporate support for social initia- 
tives. In fact, a synthesis of recommendations presented in this chapter is 
reminiscent of steps traditionally used in developing a marketing plan: a 
process that finds the best fit between an organization's mission, objec- 
tives, and capabilities and the needs and wants in the marketplace. It is a 
process that develops and executes product, pricing, distribution, and 
promotional strategies based on the unique profile of targeted audi- 
ences — a process built to win. 

This final chapter is written for executives, administrators, and pro- 
gram managers of NGOs and public sector agencies seeking contributions 
from corporations for developing and implementing initiatives intended 
to support a social cause. Most often, these organizations are seeking fi- 
nancial support for promotional campaigns, program expansion, and out- 
reach efforts. They may find, as we have learned, that corporations are 
sometimes even more willing to contribute nonmonetary resources, those 
they may consider they have in abundance (e.g., staff expertise, employee 
volunteers, idle equipment, space in promotional materials, and access to 
underutilized distribution channels). Although the guidelines presented 
here are most applicable to organizations initiating proposals to corpora- 
tions, the fundamental principles also apply to those who have been ap- 
proached by a corporation to assess a potential partnership. 

The following 10 recommendations are based on what we have 
learned from corporate executives about benefits they are seeking from 
their contributions, concerns that can hold them back, circumstances 
that prompt their interest in participation, how they choose among so- 
cial initiatives to support, how they evaluate potential proposals, and 
what they want and expect from their partners. Our focus now turns 
from the process of selection, development, and implementation of so- 
cial initiatives to guidelines for approaching and securing corporate sup- 
port. From this point forward, the corporate decision maker is in the 
customer seat and the cause agency is a marketer. 2 


Start by developing a list of social issues that your organization or 
agency is currently charged with supporting and that would benefit 
from additional resources. Be specific. 

264 A Marketing Approach to Winning Corporate Funding 

Most nonprofit organizations and many governmental agencies exist 
to support some social cause and, at any given point in time, are focused 
on programs and services that will advance their mission. Of interest 
here are those projects and initiatives that would benefit from additional 
funding or other resources in order to have a greater impact. Key at this 
initial step is to identify one or more specific issues that can then be put 
forth for consideration. 

For example, at the mission level, the American Cancer Society 
works to eliminate cancer as a major health problem through efforts in- 
cluding research, education, advocacy, and service. 3 When considering 
needs for corporate support and involvement, this step would involve 
identifying specific priorities for campaigns or programs, such as one that 
encourages kids to get at least 60 minutes of moderate to vigorous physi- 
cal activity five days a week or more, or one that urges women and men 
over 50 to get tested for colon and rectal cancer. 

Similarly, the Nature Conservancy, which works to preserve plants, 
animals, and natural communities by protecting lands and waters, cur- 
rently lists five priority conservation initiatives on its web site for focus, 
ones to address climate change, fire management, freshwater conserva- 
tion, invasive species, and marine conservation. 4 This specific delin- 
eation will provide direction for identifying potential corporate partners. 

Issues for the Boys 6k Girls Clubs of America, the Positive Place for 
Kids, range from wanting to help members develop basic computer skills 
to wanting to increase gang prevention and intervention efforts in the 
community, to wanting to provide family fun nights and single-parent 
support groups as a part of their family support initiative. As we can fore- 
see, each of these social issues can eventually lead to the discovery of dif- 
ferent natural partners in the corporate world — partners like Microsoft, 
which donated more than $100 million in software and cash, providing a 
comprehensive package of the latest Microsoft products to clubs 
throughout the country. 5 

Relative to a marketing model, we could think of these specific so- 
cial issues as products (offerings) that the nonprofit organization or gov- 
ernmental agency wants to sell in the marketplace (e.g., physical 
activity, marine conservation, and computer skills), ones whose "sales 
volume" would benefit from increased financial and related support. 
And this is where potential corporate partners come in. In reality, these 
organizations and agencies are seeking corporate partners who will help 
design, package, produce, promote, and distribute products to a market- 

Recommendation 2 


place. Our first need, as recommended here, is to clarify and prioritize 
potential products. 


Identify a short list of corporations that these social issues might have 
a connection with, something that relates to their business mission, 
products and services, customer base, employee passions, communities 
where they do business, and/or their corporate giving history. 

We heard frequently from those interviewed for cases in this book 
that one of the first and most important criteria for selecting a social is- 
sue to support is that it has some connection to their business. And we 
saw examples of how this worked. 

Inherent in a business mission, whether formally articulated or not, is 
the organization's purpose, what it is that they want to provide or accom- 
plish in the larger environment. Given this, it seems logical for the Uni- 
versity of North Carolina at Chapel Hill to have considered the New 
York Times Foundation for contributions to their School of Journalism. 
Likewise, it was natural for the American Red Cross, in need of cellular 
phones for workers to communicate with each other during times of dis- 
aster, to approach AT&T Wireless, a company that wants to connect 
people to information and things they "care about most." 6 

Potential connections to products are even easier. It seems an obvi- 
ous fit for Yellowstone National Park to think of General Electric for 
better lighting to reduce the sky glow around Old Faithful; for the Lions 
Club to consider LensCrafters as a partner to collect old or unused eye- 
glasses; for an Arizona water coalition to think they had a good chance 
with a store like Home Depot as a corporate sponsor; and for a children's 
hospital to imagine that a local life vest manufacturer would be inter- 
ested in having their brand name featured on drowning prevention pro- 
gram materials. 

Some issues will appeal to the corporations because they appeal to 
their customer base. The Arthritis Foundation may have predicted Aleve 
would be interested in sponsoring their annual walk, and local humane 
societies probably thought they would be welcomed to conduct adoption 
fairs at PETsMART. Similarly, we know that corporations want to attract 
and retain a motivated workforce and are responsive to issues that their 
employees care about. Nonprofit agencies serving the homeless in the 

266 A Marketing Approach to Winning Corporate Funding 

Washington, D.C., area probably know that employees at Fannie Mae 
are eager to participate in activities to help them raise funds to support 
their programs. 

We saw how passionate corporations can be about contributing to is- 
sues in their own back yard, as Habitat for Humanity in Detroit discov- 
ered with Ford, and local HIV/AIDS prevention organizations have 
found with the Coca-Cola Foundation and Coca-Cola bottlers in Africa. 

Finally, the strongest connection to a social issue may be through a 
long corporate history of giving to a particular cause. Schools in Florida 
probably knew they could count on Washington Mutual to help get the 
word out about a town hall meeting on school issues, and local AIDS or- 
ganizations probably know Kenneth Cole Productions will be open to 
ideas for campaigns to support the use of condoms. 

These connections can be found using a variety of relatively simple 
research techniques, including reviewing corporate giving and citizen- 
ship statements on corporate web sites, in annual reports, in publications 
(e.g., Chronicle of Philanthropy, the Foundation Center, the Federal 
Register, and the Council on Foundations), and in press releases available 
online, and through discussions with board members and other commu- 
nity leaders involved in local businesses. It would, of course, be advanta- 
geous if the community agency has an existing or historical relationship 
with one of these companies on the short list. 

As a final component of this activity, at the same time that a short 
list of ideal potential corporations is made, it is also important to identify 
corporations that your agency or organization does not consider a good 
match and/or activities that would not be acceptable (e.g., a state immu- 
nization coalition may have established partner guidelines that exclude 
certain corporate partners such as pharmaceuticals, or a public school 
may decide that it will limit activities from a soft drink sponsor to pro- 
motions of bottled water only). 


Approach corporations and/or their communication agencies and find 
out more about their interests and experiences relative to supporting 
social initiatives. 

In the ideal world, an initial contact would begin with a brief meeting 
or telephone conversation with the CEO of each of your targeted compa- 

Recommendation 3 


nies. It is this person's perspective that is invaluable at this phase of the 
process, providing more information about the company's interests, expe- 
riences, and preferences relative to supporting social causes, and about 
current business challenges and opportunities. Entering at this level 
might be made more likely if someone on the board of your agency, or a 
community leader associated with your agency or cause, is able to provide 
an introduction. The initial conversation could even be conducted by 
one of these VIPs, with a subsequent referral to others in the company. 

However, it is more likely that initial contacts will be with depart- 
ment managers or their assistants. Relevant departments include those 
dealing with community affairs (e.g., Public Affairs, Corporate Social 
Responsibility, or Community Relations), corporate communications, 
marketing, and/or public relations. If the corporation has a foundation, 
initial meetings may include their representatives as well. If possible, try 
to arrange an initial meeting that includes one representative from their 
community affairs area and one from marketing. It is their combined per- 
spectives and responsibilities that will provide the richest input. 

Introductory comments should focus on positioning the meeting as an 
inquiry. You are exploring opportunities for community partnerships to 
support initiatives of interest to your organization. Your purpose is to learn 
more about their company's interests and needs and, if appropriate, come 
back with ideas on ways you might work together to benefit the cause, as 
well as meet some of their business goals. This is an interview, not a pro- 
posal. Let them know what research you have done on their company that 
has led you to them and how it aligns with your agency's mission. 

Whether in one meeting or multiple meetings, some of the first 
questions you want to explore are those related to their interests regard- 
ing social issues and their experiences relative to social initiatives. Your 
questions could include the following: 

• What social issues currently interest their organization the most 
and why? You can share what issues you are aware of that they 
supported in the past and ask why those issues were selected. If 
current issues differ from those that were of concern in the past, 
what brought about this change? 

• What causes are their employees passionate about, if any? Is this a 
major consideration for them when they consider options for sup- 
port and involvement? 

268 A Marketing Approach to Winning Corporate Funding 

• What causes are their target markets or customers passionate 
about? Again, is this a major consideration when they evaluate 

• What forms of support interest them most? You could mention 
the various types of initiatives and ask, in general, which are the 
most and least appealing. Do they tend to like to work with com- 
munity partners or prefer to handle things internally? 

• What has worked well in the past? What outcomes did they value 

• What hasn't worked well in the past? What lessons were learned? 


Listen to their business needs. 

Other initial topics to explore are those related to the company's 
business goals and objectives. Your interest is grounded in your perspec- 
tive that social initiatives can and should support economic as well as so- 
cial and environmental goals; that when corporations can demonstrate a 
return on their investment in social initiatives, they are more likely to 
develop long-term relationships with community partners and focus 
their giving programs on what is working. You think of them as a poten- 
tial customer and want to understand what needs they have that a part- 
nership with you might be able to fill. Your conversation will inspire your 
staff to consider options for initiatives with the best chance for winning 
their support. 

Question areas should touch briefly on most aspects of the busi- 
ness, exploring corporate image, operations, human resources, commu- 
nity relations, public relations, and marketing issues. They might be 
framed as follows: 

• Are there any aspects of your visibility or reputation in the commu- 
nity that you are interested in enhancing? It may be something 
that people don't know about you that you wish they did, or some- 
thing they think about you that you wish they didn't. 

• Are there any key messages about your company that you feel a 
sense of urgency to communicate? 

Recommendation 5 


• What about operational issues 1 . Are there any guidelines from regu- 
latory agencies that you are trying to meet that would benefit 
from public support? Are there any relationship issues with suppli- 
ers, franchise owners, and/or distributors that would be strength- 
ened by involvement in social issues? 

• Are you facing any major challenges relative to attracting and re' 
taining a motivated workforce that might be supported by corporate 
involvement in the community or by volunteer opportunities? 

• Are there any consumer or business markets that you are pursuing 
where involvement in a social cause might give you a competitive 
edge, or where a relationship with a strong community partner 
might be beneficial? 

• In terms of brand images, are there any specific products that you 
are trying to position or reposition? Are there aggressive sales goals 
related to any of these products? 

One example presented in this book that might help demonstrate 
the value of these questions is the case regarding Subway, described in 
Chapter 5. One could imagine that an interview such as the one out- 
lined above, conducted by a representative from the American Heart 
Association, might have revealed Subway's interest in being perceived as 
a healthy fast-food option. The interview may also have shown that Sub- 
way wanted to support franchise owners with increased sales, to build 
pride for their products among employees, to differentiate themselves 
from others in the fast-food industry, and that they wanted their line of 
low-fat subs to capture a significant share of the healthy fast-food cate- 
gory, ideally to launch it. One can further imagine that the American 
Heart Association representative might be eager to return to the office, 
confident that he or she might have just found a major sponsor for the 
annual fundraising walk. 


Share with them the social issues your organization supports, the ini- 
tiatives you are considering or engaged in, and your strengths and re- 
sources. Find out which, if any, they find most appealing. 

Social issues, as we are referring to them here, are the specific problems 

270 A Marketing Approach to Winning Corporate Funding 

that your organization is interested in solving, ones that would benefit 
from additional financial and related support. We have suggested that 
these issues be considered products you want to sell in the marketplace. At 
some point in this getting-to-know-each-other process, this list should be 
shared. It should be limited to those that your research, hunches, and early 
discussions suggest might be of most interest to the corporation being ap- 
proached and interviewed. This is also when you share your guidelines for 
acceptable activities. 

The American Legacy Foundation's story of finding corporate sup- 
port for one of its initiatives illustrates this process well. As background, 
the American Legacy Foundation was established in 1999, funded pri- 
marily by funds from the Master Settlement Agreement with the to- 
bacco industry. The organization works to build a world where young 
people reject tobacco and anyone can quit smoking. Efforts are concen- 
trated on providing grants, technical training and assistance, youth ac- 
tivism, strategic partnerships, countermarketing and grassroots 
marketing campaigns, and public relations. The organization has a spe- 
cial focus on helping communities disproportionately affected by the toll 
of tobacco, including African Americans, Hispanics, and Native Ameri- 
cans. One of the foundation's signature programs is "Circle of Friends: 
Uniting to Be Smoke-Free," a national grassroots social movement to 
highlight the importance of supporting smokers who want to quit, while 
also educating people about the toll of tobacco-related disease on 
women, their families, and communities. 

Of interest for this illustration is one of the foundation's specific 
partnerships, designed to reach young women smokers ages 16 to 24- The 
foundation was seeking to help young women who want to quit smoking, 
but also to educate other young women in this age group so that they 
never start smoking. Match this interest with the knowledge that Avon, 
the global cosmetics giant, was planning to debut a new beauty business, 
called "mark," targeting the 300 million young women ages 16 to 24 in 
the United States, who have an estimated spending power of $250 bil- 
lion, $75 billion of which is spent in the beauty and fashion sectors. 7 Pic- 
ture Avon mark executives' reaction when the American Legacy 
Foundation explored a potential partnership with them. Recent com- 
pelling research findings had indicated that among the 25 percent of 
young women ages 16 to 24 who smoke, 65 percent wanted to quit, but 
only 3 percent succeeded for a least a year. 8 

The two organizations agreed to work together, through Circle of 

Recommendation 6 


Friends, to reach young women with healthy lifestyle messages around 
smoking. In a press release announcing the partnership, Deborah Fine, 
the president of Avon Future, commented: "Building upon Avon's more 
than 100-year legacy and leadership in the area of women's health, mark 
is privileged to continue this commitment with a new generation of 
women who are eager to make a difference." 9 The press release an- 
nounced that mark would be promoting cessation messages, encouraging 
mark representatives to communicate with their peers about tobacco use, 
and donating all proceeds from the sale of the Circle of Friends Sunburst 
Pin to the American Legacy Foundation. 


Prepare and submit a proposal to those corporations most interested in 
your social issues. Present several optional initiatives for potential 
support, ones that are the best match for their stated business and 
marketing needs. 

At this point, you are hopefully rich with input. Ideally, you know 
the priority social issues the targeted company or companies are inter- 
ested in and ones they consider a priority. You understand their current 
business goals and challenges and have identified ones that you might be 
able to support. You have a sense of what types of initiatives they prefer 
most and you have an inside track on what they value in a partnership — 
and what makes them leery. This should make it easy to take the next 
step, crafting a proposal. 

A proposal should include a clear statement of purpose, highlighting 
the potential impact that proposed initiatives would have on a social is- 
sue of common concern. "This initiative is intended to help reduce oral 
disease among children by increasing access to dental care among low- 
income populations." It should make clear how this specific initiative 
would meet priority needs for the cause. "Your financial support will enable 
us to reach the vast majority of underserved youth enrolled in after- 
school programs at Boys & Girls Clubs across the country." You should 
also indicate your interest and commitment to help develop evaluation 
mechanisms to measure this impact. 

Identify the strengths and resources you intend to bring to the table, 
including your technical and clinical expertise regarding the issue, staff 
time you intend to dedicate to the project, involvement of high-visibility 

272 A Marketing Approach to Winning Corporate Funding 

board members or elected officials, and actual funds you intend to com- 
mit. Talk about your interest in a long-term partnership if at all feasible. 

Outline options for their contributions, recalling their preferences 
for direct monetary contributions versus in-kind services or employee 

Highlight potential benefits for the corporation. Include mention of 
how you believe this new initiative will leverage their current and past 
efforts in the community. Suggest ways their employees might be in- 
volved. Point out the business and marketing goals you believe this may 
support, and express your interest in working with them to maximize 
these opportunities. Provide options for visibility for their contributions, 
remaining open to their preferences for tactical strategies such as logo 
placement and use of corporate colors. Mention any additional strong 
community partners that are currently involved or that you intend to ap- 
proach, and what they will also be providing. Offer initial ideas about 
how you might publicly recognize their contributions, ones that reflect 
the corporation's business and marketing goals as well as its unique cul- 
ture and style. 

Using these principles, imagine how product managers at Dole might 
have responded to a proposal from the National Cancer Institute's "5 A 
Day for Better Health" program that outlined an opportunity to play a vi- 
tal role in the national "5 A Day" initiative, which would include Dole's 
presence on nutritional education program materials that would likely 
reach over 30,000 schools and 100,000 elementary teachers in the United 
States and would provide multiple co-branding opportunities, including 
using the "5 A Day" logo stickers on a banana. "Where do I sign?" 


Participate in developing an implementation plan. 

Traditional components of an implementation plan will include set- 
ting objectives and goals (desired outcomes) for the company and the 
cause; selecting target audiences; identifying strategic activities; and de- 
termining roles, responsibilities, timelines, and budgets. As we heard 
from many corporate executives, involvement of cross-functional teams 
in this planning process (from the corporation as well as the NGO or 
public agency) is often key to a successful program and should be encour- 
aged early on. 

Recommendation 8 


Initial plans should be considered a draft, as there will likely be 
needs for your agency, as well as the company, to review intended strate- 
gies with senior management and, in many cases, to test ideas with other 
key publics including customers of the corporation, donors to your 
agency, or citizens in a community. For example, a public agency inter- 
ested in corporate support for a childhood immunization campaign may 
learn quickly, by conducting a couple of focus groups with parents, that a 
partnership that included a drugstore's name on the front of a brochure 
raised considerable concern with material content, but that by adding 
the phrase "Printing courtesy of before the name and putting it on the 
back of the brochure, objections were assuaged. From the corporation's 
point of view, a quick test with customers in a retail store might reveal 
that cause promotional messages on grocery bags would not be noticed 
unless the checkout clerk also mentioned the promotion. 


Offer to handle as much of the administrative legwork as possible. 

Several initiatives — especially cause promotions, cause-related mar- 
keting, and social marketing ones — tend to involve more administrative 
time and effort than others, such as providing a cash grant or participat- 
ing in a one-time employee volunteer event. In cases where these initia- 
tives have been identified as ideal relative to desired outcomes, it may be 
important for the NGO or the public agency staff to facilitate the part- 
nership by offering to take on a variety of administrative tasks, which 
may range from establishing record-keeping systems to editing copy to 
coordinating with printers and delivering materials. 

Willingness to assume these responsibilities will do more than just 
relieve the corporate partner. It may make the difference in how much 
they are able to contribute to the campaign and its duration; it may also 
influence whether a company is willing to commit to a multiyear cam- 
paign or a one-time-only event. This then affects the possibility of ex- 
ploring additional initiatives in the future. 

Consider the partnership between PARADE magazine and Share Our 
Strength and others sponsors, where partners needed to track and then re- 
port on the numbers of people across the country that baked, bought, or 
sold goods during the Great American Bake Sale, and then distribute 
funds to qualifying organizations, in part according to geographic locations 

274 A Marketing Approach to Winning Corporate Funding 

where funds were raised. An offer by Share Our Strength and other part- 
ners to help make this happen may be key to the publisher's high level of 
program participation. 


Assist in measuring and reporting outcomes. 

Agency managers should express in early discussions a commitment 
to program evaluation. Corporate satisfaction and long-term commit- 
ment to a partnership may in fact rely significantly on this factor. 

Once program goals and strategies have been established, a specific 
evaluation plan can be developed to assess program processes as well as 
outcomes. This should be a team effort, as it will be important to mea- 
sure and report outcomes for the cause relative to established objectives 
and goals, as well as for the company. This plan should include delin- 
eation of roles and responsibilities as well as fund requirements. 

Evaluation efforts vary significantly by type of initiative, each present- 
ing its own set of metrics, requirements, and challenges. Red Cross may 
have simply reported back to AT&T Wireless the number of chapters that 
received their donated phones, the numbers of times the phones were used, 
and the types of emergency situations that were ameliorated by this im- 
proved access during times of disaster. The task for the water conservation 
coalition and Home Depot in Arizona would be more daunting, with de- 
sired process measures including number of participants in workshops and 
reach and frequency of advertising messages; and outcome measures would 
need to attempt to monitor increases in sales of featured products as well as 
changes in awareness of water conservation techniques and levels of water 
usage in the region. The effort would clearly need more hands on deck. 


Provide recognition for the corporation's contribution, in ways pre- 
ferred by the company. 

Although we found varying levels of enthusiasm for corporate recog- 
nition and a range of preferred forms for this recognition, one theme was 
pervasive: Let the cause partner and those who benefited from the initia- 
tive tell the story. 

Summary of Recommendations for Seeking Corporate Support 275 

Consider the power of American Legacy Foundation presenting 
Deborah Fine, president of Avon Future, the Corporate Leadership 
Award honoring "individuals committed to advancing the foundation's 
mission to build a world where young people reject tobacco." 10 And if 
you were a division manager for 7-Eleven in Texas, imagine your appreci- 
ation when the Texas Department of Transportation recognizes your ef- 
forts for influencing motorists to "stash their trash." What better 
acknowledgment could there be for Shell's contribution than for the Na- 
ture Conservancy to be the one to publicly applaud volunteer efforts to 
protect coastal habitats or for a school superintendent to include a 
thank-you to Washington Mutual in the district's newsletter? And imag- 
ine the satisfaction for Aleve to be publicly recognized by the Arthritis 
Foundation, for Pampers by the SIDS Foundation, for Wal-Mart by the 
Children's Miracle Network, for Subway by the American Heart Associ- 
ation, for Crest by the Surgeon General, for Dole by the National Can- 
cer Institute, and for Lysol by Keep America Beautiful. Such kudos are 
about as good as it gets. 


This chapter has presented guidelines and principles (listed together be- 
low) that we believe offer NGOs and public agencies the best chances 
for winning support from corporations for social initiatives. 

1. Start by developing a list of social issues that your organization 
or agency is currently charged with supporting and that would 
benefit from additional resources. Be specific. 

2. Identify a short list of corporations that these social issues might 
have a connection with, something that relates to their business 
mission, products and services, customer base, employee pas- 
sions, communities where they do business, and/or their corpo- 
rate giving history. 

3. Approach corporations and/or their communication agencies 
and find out more about their interests and experiences relative 
to supporting social initiatives. 

4. Listen to their business needs. 

276 A Marketing Approach to Winning Corporate Funding 

5. Share with them the social issues your organization supports, the 
initiatives you are considering or engaged in, and your strengths 
and resources. Find out which, if any, they find most appealing. 

6. Prepare and submit a proposal to those corporations most inter- 
ested in your social issues. Present several optional initiatives for 
potential support, ones that are the best match for their stated 
business and marketing needs. 

7. Participate in developing an implementation plan. 

8. Offer to handle as much of the administrative legwork as possi- 

9. Assist in measuring and reporting outcomes. 

10. Provide recognition for the corporation's contribution, in ways 
preferred by the company. 

We recognize that few have the luxury, the time, the patience, or the 
perfect-world scenario that might be needed to following these recom- 
mended practices, particularly in a sequential order. We know that the 
reality looks more like "we need to get more funds to make this campaign 
work, and we need them soon, so let's apply for a grant from General 
Mills or ask one of our board members if they'd renew their company's 
annual commitment." We understand this is asking a lot — from the 
NGO, the public agency, and the potential corporate partner. 

At a minimum, keep focused on an intention to develop a program 
that will do the most good for the cause as well as the company, and hold 
close a conviction that the public, nonprofit, and private sectors can and 
should work together to meet social and environmental goals as well as 
economic ones. In fact, all of our stakeholders and benefactors are count- 
ing on us to do just that. 


Chapter 1 The Case for Doing at Least Some Qood 

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8. Starbucks Corporation, Corporate Social Responsibility Annual Report 
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9. American Express Company, Philanthropy at American Express 
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25, 2004). 

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1 (accessed March 25, 2004). 

14- Carly Fiorina, speech, Business for Social Responsibility Annual 
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16. Nike Inc., Nike 2001 Corporate Responsibility Report: Vision, 
(Beaverton: Nike Inc., 2001), 4, 
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17. Craig Smith, "The New Corporate Philanthropy," Harvard Business 
Review, May-June 1994, 105-107. 

18. Ibid., 108. 

19. Ibid. 

20. David Hess, Nikolai Rogovsky, and Thomas W. Dunfee, "The 
Next Wave of Corporate Community Involvement: Corporate 



Social Initiatives," California Management Review 44, no. 2, Win- 
ter 2002, 114. 

21. Business for Social Responsibility, "Introduction." 

22. Cone Inc., "The Cone/Roper Study — A Benchmark Survey of Con- 
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23. Cone Inc., "Post-September 11th: Major Shift in American 
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25. Paul Bloom, Steve Hoeffler, Kevin Keller, and Carlos Basurto, "Con- 
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paper, 2003. 

26. Minette E. Drumwright, "Socially Responsible Organizational Buy- 
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27. Business for Social Responsibility, "Introduction." 

28. Hamish Pringle and Marjorie Thompson, Brand Spirit: How Cause 
Related Marketing Builds Brands (London: Wiley, 2001), 5-9. 

29. Ibid., xxi. 

30. Ibid., xxii. 

31. Bloom, Hoeffler, Keller, and Basurto, "Consumer Responses." 

32. Council for Economic Priorities, Shopping for a Better World: The 
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33., "2004 America's Most Admired Companies," 
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34. William Baue, "April 29, 2002: Business Ethics' 100 Best Corpo- 
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25, 2004). 

35. Business for Social Responsibility, "Introduction." 

36. Ibid. 



37. Hess, Rogovsky, and Dunfee, "Next Wave," 113-114. 

38. Smith, "New Corporate Philanthropy," 109-110. 

39. Cone Inc., 2002 Cone Corporate Citizenship Study: New National 
Survey Finds Americans Intend to Punish Corporate "Bad Guys," Re- 
ward Good Ones (Boston: Cone Inc., 2002). http://www.conenet 
xom/Pages/pr_13.html (accessed April 2, 2004). 

40. Ibid. 

41. Business for Social Responsibility, "Introduction." 

42. The Timber land Company, Timberland Corporate Social Responsibility 
Report for the Year 2000 (Boston: The Timberland Company, 2000). 

43. Cisco Systems, Inc., Case Study: Energy Efficiency in Design 
and Construction — Cleaner Air and Millions in Savings (San Jose: 
Cisco Systems, Inc., 2003), 
/ac227/ac228/ac229/about_cisco_corp_citi_case_study.html (accessed 
April 2, 2004). 

44- World Business Council for Sustainable Development web site, 
"Banking on a Good Reputation," as reported in the Financial 
Times, July 21, 2003, by Jane Fuller, 
/DocSearch/details.asp?type=DocDet&DocID=MTgzNQ (accessed 
July 21, 2003). 

45. Ibid. 

46. Praveen Sinha, Chekitan S. Dev, and Tania Salas, "The Relation- 
ship Between Corporate Social Responsibility and Profitability of 
Hospitality Firms: Do Firms That Do Good Also Do Well?" work- 
ing paper, January 15, 2002, 4, Cornell School of Hospitality Man- 
(accessed April 2, 2004). 

47. Business for Social Responsibility, "Introduction." 

48. NewCircle Communications, "Corporate Social Responsibility — 
A New Ethic for a New Economy," CSRWire, SRI World Group, 
Inc., (accessed April 2, 

49. William Baue, "Business Ethics' 100 Best." 

50. Susan Orenstein, "The Selling of Breast Cancer," Business 
2.0, February 2003, 
/0,1643,046296,00.html (accessed October 6, 2003). 

51. American Heart Association Inc,. "Tobacco Industry's Target- 
ing of Youth, Minorities, and Women," American Heart Associa- 
tion Inc., 



= 1 1226 (accessed March 25, 2004), and Philip Morris USA— Policies, 
Practices & Positions, "Youth Smoking Prevention," http://www (accessed July 

52. Sinha, Dev, and Salas, "Corporate Social Responsibility and Prof- 

53. McDonald's Corporation, Social Responsibility Report 2002, 11. 

54- John Gourville and Kash Rangan, "Doing Well by Doing Good: Un- 
derstanding and Valuing the Cause Maketing Relationship." Har- 
vard Business School, working paper August 29, 2003. 

55. Bloom, Hoeffler, Keller, and Basurto, "Consumer Responses." 

Chapter 2 Corporate Social Initiatives 

1. Washington Mutual, Inc., 2001 Community Annual Report (Seat- 
tle: Washington Mutual, Inc., 2001), 
/about/community/commitment/annualreport/summary.htm (accessed 
July 29, 2003). 

2. Washington Mutual, Inc., 2002 Community Annual Report (Seat- 
tle: Washington Mutual, Inc., 2002), 
/about/community/commitment/annualreport/summary.htm (accessed 
March 25, 2004). 

3. Washington Mutual, Inc. Giving Guidelines (Seattle: Washington 
Mutual, Inc., 2004), 
/support/givingguidelines/givingguidelines.htm (accessed March 25, 

4- Washington Mutual, Inc., 2003 Community Annual Report, 12. 

5. Washington Mutual, Inc., "WaMu & Education: Class Acts" http:// 
/wamueducation.htm (accessed March 25, 2004). 

6. Ibid., 21. 

7. Ibid., 17. 

8. Washington Mutual, Inc., 2002 Community Annual Report, 2. 

9. Dell Computer Corporation, "Michael Dell Discusses Digital Inclu- 
sion at The National Council of La Raza, Austin, Texas," Corporate 
Social Responsibility Newswire Service, July 16, 2003, http://www (accessed March 25, 2004). 

10. Michael Dell, "Letter from the Chairman: Dell Corporate Vi- 
sion," Dell Computer Corporation, 



/corporate/vision_print_ceo_environ.htm (accessed August 18, 

2003) . 

11. Dell Computer Corporation, Dell Environmental Report: Fiscal Year 
2003 in Review, (Austin: Dell Computer Corporation, 2003), 7, http: 
/index ?c=us&l=en&s=corp (accessed March 25, 2004). 

12. U.S. Environmental Protection Agency, "Resource Conserva- 
tion Challenge," (accessed March 25, 

2004) . 

13. Dell Computer Corporation, Dell Environmental Report: Fiscal Year 
2003 in Review, 27. 

14. Dell Computer Corporation, Dell press release, December 19, 2001, 
Austin, Texas, 
office_print_news_2001-12-19-aus-00 (accessed 8/21/2003). 

15. Dell Computer Corporation, "Dell and the Environment," http: 
//wwwl. us. 
/index?c=us&cs=19&l=en&s=dhs (accessed March 25, 2004). 

16. Dell Computer Corporation, Dell Environmental Report: Fiscal Year 
2003 in Review, 745. 

17. Ibid. 

18. McDonald's Corporation, "Awards and Recognition," http:// 
annual.html (accessed March 25, 2004). 

19. McDonald's Corporation, Social Responsibility Report 2002 (Long 
Island: McDonald's Corporation, 2002), 4, 
xom/corp/values/socialrespons/sr_report.html (accessed March 25, 

20. McDonald's Corporation, Social Responsibility Report 2002, 2. 

21. Ibid., 4. 

22. Ibid., 16. 

23. McDonald's Corporation, "Children's Day," 
xom/corporate/whatsnew/childrensday/children.html 8/18/2003 or (accessed March 
25, 2004). 

24. Ibid. 

25. McDonald's Corporation, "Celebrity Support," 
/index.html or 
.html (accessed August 18, 2003). 



26. McDonald's Corporation, Social Responsibility Report 2002, 14. 

27. Ibid. 

28. Ibid., 21. 

29. Ibid., 20. 

Chapter 3 Corporate Cause Promotions 

1. Ben 6k Jerry's Homemade Holdings, Inc., "One Sweet Whirled: 
One Sweet Campaign to Fight Global Warming," http://www (accessed April 2, 2004). 

2. Ben 6k Jerry's Homemade Holdings, Inc., "Our Mission Statement," (accessed March 

3. Ben 6k Jerry's Homemade Holdings, Inc., "One Sweet Whirled." 

4. PETsMART, the bouncing ball, PETsMART Charities, and Just A 
Buck, Change Their Luck are trademarks of PETsMART Store Sup- 
port Group, Inc., and may be federally registered or pending registra- 
tion in the United States and other jurisdictions. 

5. PETsMART Inc., "Happiness Is Saving a Pet's Life," http:// (accessed March 27, 2004). 

6. Ibid. 

7. Ibid. 

8. Arthritis Foundation, Arthritis Walk home page, http://www 

9. British Airways, Pic, "Change for Good," http://www.british (accessed March 27, 
2004), and 

10. U.S. Fund for UNICEF, "Change for Good," http://www.unicefusa 
.org/support/cfg.html (accessed October 9, 2003). 

11. UNICEF, "Change for Good," 
/changeforgood (accessed April 7, 2004). 

12. Ibid. 

13. Wal-Mart Stores Inc., "Wal-Mart: Good. Works.," (accessed October 9, 2003). 

14. Ibid. 

15. Wal-Mart Stores Inc., "Children's Miracle Network," http://www (accessed March 



16. PARADE Publications, "Great American Bake Sale Media Cen- 
ter," (accessed October 9, 

2003) . 

17. PARADE Publications, "Facts on Parade," http://www.parade 
xom/mediarelations/press_releases/facts.html (accessed October 
9, 2003). 

18. David Oliver Relin, "Thanks a Million," PARADE, October 5, 
2003, 18-20. 

19. Nordstrom Inc., "Diversity Affairs," 
/aboutus/diversity/diversity.asp (accessed October 9, 2003). 

20. Ibid. 

21. The Body Shop International, Pic, "The Body Shop: Our Values," (accessed 
on March 30, 2004) 

22. The Body Shop International, Pic, "The Body Shop: Our Values," (accessed on March 30, 

2004) . 

23. Johnson & Johnson Health Care Systems, "Healing the Crisis in 
Nursing: A Progress Report," 
/20030506_100339.htm (accessed October 9, 2003). 

24- Copyright © Johnson & Johnson Health Care Systems Inc., 

25. Luxottica S.p.A., "LensCrafters: Give the Gift of Sight," www (accessed April 2, 2004). 

26. Michael Siegel and Lynne Doner, Marketing Public Health: Strate- 
gies to Promote Social Change (Gaithersburg, MD: Aspen, 1998), 

Chapter 4 Cause-Related Marketing 

1 . American Express Company, "2000 Report: Philanthropy at Ameri- 
can Express," 
/default.asp (accessed March 30, 2004). 

2. Business for Social Responsibility, "Cause Related Marketing: In- 
xfm/?DocumentID=215 (accessed March 30, 2004). 

3. Windermere Real Estate Services Inc., "The Windermere Foundation: 



Helping Homeless and Low-Income Families," 
(accessed March 30, 2004). 
4- Newman's Own, "Shameless Exploitation in Pursuit of the Com- 
mon Good," Newman's Own, 
million.htm (accessed March 30, 2004). 

5. Libby Wells, "Emotional Appeal of Charging for Charity Rings 
Up the Donations for Favorite Causes," Bankrate Inc., http://www (accessed March 30, 2004). 

6. L. Nicholas Deane, "Credit Cards and Donor Affinity," The Non- 
profitTimes, April 15 (2003). 
/fme_2.html (accessed March 30, 2004). 

7. Ibid. 

8. Working Assets, "Working Assets Mission, Donations, and Ac- 
tivism," (accessed No- 
vember 11, 2003). 

9. First USA, "World Wildlife Fund Platinum Card: Help the Wild 
Things Stay Wild," 
serve. cgi?partner_dir_name=world_wildlife_fund&page=cont& 
mkid=6T9N (accessed March 30, 2004). 

10. American Lung Association, "When You Can't Breath Nothing 
Else Matters," (accessed April 14, 

11. Hamish Pringle and Marjorie Thompson, Brand Spirit: How Cause 
Related Marketing Builds Brands, (London: John Wiley and Sons Ltd, 
2001), 32. 

12. Avon Foundation, "Avon Foundation Welcome: Help Make Us Ob- 
solete — Support the Cause," 
/avoncrusade/index.html (accessed March 30, 2004). 

13. Ibid. 

14. MMWR2003. Cigarette Smoking Among Adults — United States. 
52(40): 953-956. CDC Annual Smoking Attributable Mortality, 
Years of Potential Life Lost and Economic Costs — United States, 

15. QVC Inc., "Corporate Facts," 
(accessed November 11,2003). 

16. From print and appearing in People magazine 8/25/03, p. 39. 

17. American Legacy Foundation, "Press Room." 

18. Keep America Beautiful Inc., "Who We Are," http://www.kab 
.org/whol.cfm (accessed April 2, 2004). 



19. Information provided by Alex Whitehouse, vice president of mar- 
keting, LYSOL Brand. 

20. Target Corporation, press release, "Guests Help Target Award $13 Mil- 
lion to Schools Nationwide," September 29, 2003, 
.com/prnews/030929/cgm048_l.html (accessed April 14, 2004). 

21. Comcast Corporation, 'About Comcast Corporation," http://com- (accessed No- 
vember 3, 2003). 

22. Louis Chunovic, "Liz Castells-Heard," Television Week, May 3, 
Week-990F0.pdf (accessed April 2, 2004) and information from Liz 

23. 2004 Twin Cities International Corporate Citizen Awards, April 20, 
2004, presented by the International Leadership Institute in con- 
junction with the Twin Cities Business Monthly. 

24- Newman's Own, "Shameless Exploitation." 

Chapter 5 Corporate Social Marketing 

1. Procter & Gamble Company, "Crest Healthy Smiles 2010 Pro- 
gram Fights the Nation's 'Silent Epidemic' In Oral Health," 
.htm (accessed April 7, 2004). 

2. Philip Kotler and G. Zaltman, "Social Marketing: An Approach to 
Planned Change," Journal of Marketing, Vol. 35: 3-12 (1971). 

3. Philip Kotler, Ned Roberto, and Nancy Lee, Social Marketing: Im- 
proving the Quality of Life (Thousand Oaks, CA: SAGE Publications, 

4- Philip Kotler and G. Armstrong, Principles of Marketing (Upper Sad- 
dle River: Prentice-Hall, 2001), 269. 

5. Kotler, Roberto, and Lee, Social Marketing. 

6. BSR "Introduction," 
Detail.cfm?DocumentID =48809 (accessed March 25, 2004). 

7. National Institute of Child Health and Human Development, 
"Health Information & Media — SIDS: 'Back to Sleep' Campaign," (accessed April 7, 2004). 

8. Ibid. 

9. Ibid. 



10. Tools of Change, "Back to Sleep — Health Canada SIDS Social 
Marketing Campaign," 
studies/default.asp?ID=161 (accessed April 7, 2004). 

11. RadioShack Corporation, "StreetSentz: Common Sentz Tips 
For Safer Kidz," RadioShack Corporation, http://www.radioshack (accessed August 
14, 2003). 

12. Best Buy Company, Inc., "Best Buy Electronics Recycling Program," 
.htm (accessed April 7, 2004). 

13. Best Buy Company, Inc., "Best Buy Announces Electronics Recy- 
cling Program," 
(accessed April 7, 2004). 

14. Ibid. 

15. Kotler, Roberto, and Lee, Social Marketing, 56. 

16. Premera Blue Cross, "New Premera Blue Cross/UW Analysis 
May Help Doctors Reduce Health Threats From Drug-Resistant 
/xcpproject/newsroom_press_releases.asp#TopOfPage (accessed April 
7, 2004). 

17. National Cancer Institute, "Dole Vice President Accepts Position 
as Director of NCI 5 A Day Program," 
/whats_newl01901.shtml (accessed April 7, 2004). 

18. Dole Food Company, Inc., "Dole 5 A Day Program Overview," 
topmenu=5 (accessed April 7, 2004). 

19. Ibid. 

20. Dole Food Company, Inc., "Dole 5 A Day," http://www.dole5 (accessed October 8, 2003). 

21. Tuerff-Davis EnviroMedia Inc, '"Don't Mess with Texas' Litter 
Prevention Campaign," 
(accessed August 25, 2003). 

22. 7-Eleven Inc., "7-Eleven Tells Customers: 'Dine on the Dash but 
Stash Your Trash",) 
?p=2052 (accessed August 25, 2003). 

23. Ibid. 

24. Safeco Corporation, "About Us," 
/about/ (accessed April 7, 2004). 



25. The Home Depot Inc., "Social Responsibility Report," http://www 
respon.shtml (accessed April 7, 2004). 

26. Ibid. 

27. "Water— Use It Wisely" and the "100 Ways in 30 Days to Save 
Water" promotion are registered trademarks of Park and Company 
Marketing Communications, Inc. 

28. Kotler, Roberto, and Lee, Social Marketing. 

Chapter 6 Corporate Philanthropy 

1. Ronald Paul Hill, Debra Stephens, and Iain Smith, "Corporate So- 
cial Responsibility: An Examination of Individual Firm Behavior," 
Business and Society Review, 108:3 (2003), 339-364. 

2. Business for Social Responsibility, "Issue Brief: Philanthropy," ?area= all 
(accessed April 14, 2004). 

3. Ibid. 

4- Ari Weinberg, "America's Most Generous Corporations," Forbes Inc., 
Printer (accessed April 14, 2004). 

5. Michael Porter and Mark Kramer, "The Competitive Advantage 
of Corporate Philanthropy," Harvard Business Review, Decem- 
ber 2002, 
Philanthropy.htm (accessed April 

6. ConAgra Foods, Inc., news release, "New Program Will Fight 
Hunger Among Pocatello Children," Pocatello, Idaho, October 14, 
2003, ?ID=2003 1016 (ac- 
cessed April 14, 2004) and ConAgra Foods 2003 Annual Report 
(Omaha: ConAgra Foods, Inc., 2003), 
/investors/index.jsp (accessed April 14, 2004). 

7. ConAgra Foods, "New Program." 

8. ConAgra Foods, Inc., news release, "Amarillo's First Kids Cafe Site 
to Hold Grand Opening at the North Branch YMCA," Amarillo, 
Texas, August 15, 2003, 
?ID=20030815 (accessed April 14, 2004). 



9. ConAgra Foods, Inc., "Feeding Children Better," http://www (accessed April 
14, 2004). 

10. Ibid. 

11. ConAgra Foods 2003 Annual Report, 26. 

12. Author interview with manager, Global Communications & 
PR, GE Consumer & Industrial Products, via e-mail, September 

13. The New York Times Company Foundation, "The New York 
Times Company Foundation 2002 Annual Report," http://www. 
(accessed April 14, 2004). 

14- The New York Times Company Foundation, news release 475, "The 
New York Times Co. Foundation to Give $100,000 to School of Jour- 
nalism and Mass Communication," July 11, 1997, http://www.unc 
.edu/news/newsserv/archives/jul97/nytimes.html (accessed April 14, 

15. Emory University, "Emory University Kenneth Cole Fellowship 
in Community Building and Social Change," http://oucp.emory 
.edu/Info/KCole.html (accessed November 11, 2003). 

16. Robin Givhan, "Polishing an Image: Kenneth Cole Brings Social 
Activism to Fashion Industry," Washington Post, August, 2003, M2. 

17. Ibid. 

18. Bill Shore, The Cathedral Within: Transforming Your Life by Giving 
Something Back, (New York: Random House, 1999), 91. 

19. Author interview with Chris Shea, president of the General Mills 
Foundation and SVP General Mills. 

20. General Motors, "Corporate Responsibility and Sustainability 
Report for 2001-2002," 
_driving.html (accessed April 14, 2004). 

21. General Motors, "Key Partners: Community Involvement Partners," 
.html (accessed April 14, 2004). 

22. Microsoft Corporation, "Microsoft's New Unlimited Potential Ini- 
tiative Seeks to Bridge Global Technology Skills Gap," Microsoft 
/09-04UPGrantsPR.asp (accessed April 14, 2004). 



23. Costco Wholesale, "Opportunities," 
/costcol2/ (accessed April 14, 2004). 

24- Committee to Encourage Corporate Philanthropy, The New Cen- 
tury Philanthropy, volume III, no. 4 (Spring 2003), http://www (accessed April 14, 2004). 

Chapter 7 Corporate Community Volunteering 

1. The Timberland Company, press release, "The Timberland Com- 
pany Launches Community Builders Tour to Support and Celebrate 
Communities," September 2, 2003, 
/ eg ib in/timber land/ timberland/ corporate/ tim_press_release . j sp ?I D = P 
R000055 (accessed April 14, 2004). 

2. Bill Shore, Revolution of the Heart (New York: Riverhead Books, 
1995), 64. 

3. Ibid., 8. 
4- Ibid., xix. 

5. Ford Motor Company, "Community Relations Committees," http:// 
.htm (accessed December 10, 2003). 

6. Ford Motor Company, "Ford Motor Company Continues to Invest 
in Rebuilding Detroit Communities," 
/news-2000-2/August-29-00- P 3.htm (accessed April 14, 2004). 

7. Ibid. 

8. Ford Motor Company, news release, "Ford Volunteers Collected 2 
tons of Greeting Cards for St. Judes," Dearborn, Michigan, February 

9. Carly Fiorina, "Keynote Address: Business for Social Responsibility 
Annual Conference," November 12, 2003, Los Angeles, Copyright 
(November, 2003) Hewlett-Packard Development Company, L.P & Ar- 
ticles (accessed December 2, 2003) 

10. Hewlett-Packard Development Company, L.P, "HP Philanthropy," =http://grants.hp. com 
/index. html (accessed April 14, 2004). 

11. Carly Fiorina, "Keynote Address." 



12. Ibid. 

13. Ibid. 

14- Cone Inc., News Release November 11, 2001 "Post-September 11th: 
Major Shift in American Attitudes Towards Companies Involved 
with Social Issues." 

15. Cone Inc., "2002 Cone Corporate Citizenship: The Role of Cause 
Branding: Executive Summary," 
/pr_13.html (accessed April 2, 2004). 

16. FedEx Corp., "Our People: Community," 
/us/about/overview/people/community/index.html?link=4 (accessed 
April 14, 2004). 

17. FedEx Corp., "About FedEx: FedEx Community," http://www (accessed April 14, 

18. Fannie Mae Foundation, "We Are Volunteer Employees (WAVE)," (accessed 
April 14, 2004). 

19. Ibid. 

20. Fannie Mae Foundation, "We Walk Together. A Report on the First 
15 Years of Fannie Mae Foundation's Help the Homeless Program," 

21. Ibid. 

22. Fannie Mae Foundation, "We Are Volunteer Employees (WAVE)." 

23. Australian Government Department of the Environment and Her- 
itage, "Environment Australia: Envirobusiness Update," Environ- 
ment Australia 2001, Issue 6 (April 2001), 
/industry/publications/ebu/ebu6/yourenv.html (accessed April 22, 

24- Shell Oil Company, "Shell Coastal Volunteers," http://www.conser (accessed April 23, 2004). 

25. Peter Duncan, "Can Australia Play a Leading Role in the Corporate 
Responsibility Debate?" BHERT News, Issue 9 (November 2000), 2. 

26. AT&T Wireless, "About Us: Overview, Our Vision," http://www (accessed April 15, 2004). 

27. American Red Cross, "Press Room: AT&T Wireless and American 
Red Cross Team Up to Make Communities Safer," http://www (accessed April 



28. Celina Adams, manager of corporate contributions, Timberland's 
Social Enterprise Department, e-mail survey message to author, 
November 2003. 

29. Stanley Litow, vice president of corporate community relations and 
president of IBM International Foundation, e-mail survey message 
to author, June 2004. 

30. Stuart Burden, director of community affairs — the America's, Levi 
Strauss & Co., e-mail survey message to author, July 2003. 

Chapter 8 Socially Responsible Business Practices 

1. Motorola Inc., "Motorola and the Environment: Motorola's Envi- 
ronmental Vision," 
(accessed April 15, 2004). 

2. Business for Social Responsibility Education Fund, Corporate Social 
Responsibility: A Guide to Better Business Practices, (San Fran- 
cisco: Business for Socially Responsible Education Fund, 2000), 179. 

3. Ibid., 112. 

4- Cisco Systems, Inc., "Energy Conservation — Case Study: Energy 
Efficiency in Design and Construction," 
/ en/US/ about/ac2 2 7/ac2 2 8/ac2 2 9/ about_cisco_corp_citi_case_study. 
html (accessed April 16, 2004). 

5. Avert, " HIV and AIDS Statistics for Sub-Saharan 
Africa," (accessed April 16, 

6. The Coca-Cola Company, "HIV/AIDS program," http://www2 (accessed 
April 16, 2004). 

7. Ibid. 

8. Business for Social Responsibility Education Fund, Corporate Social 
Responsibility, 4. 

9. Motorola Inc., "Motorola: Leadership Programs to Protect the Envi- 
(accessed April 16, 2004). 

10. Ibid. 

11. Ibid. 

12. Ibid. 



13. Intel Corporation, "Intel: Environmental, Health, and Safety 2002 
Report," intel/other/ ehs/prevention/prevent.htm 
(accessed April 16, 2004). 

14. Ibid. 

15. Ibid. 

16. White Wave, Inc., "Press Releases 2003: White Wave Invests in 
Wind to Fuel Soy Manufacturing," 
/index.php?id=108&pid=27 (accessed April 16, 2004). 

17. Sue Mecklenburg, vice president of corporate business practices, in- 
terview with author, October 2003. 

18. GreenMoney Journal, "Starbucks and Conservation International 
Partnership Recognized in Top Global Sustainable Development 
Partnership Category at World Summit in Johannesburg," 

19. Penny Bonda and Katie Sosnowchik, green@work magazine, July/ 
August 2003. 

20. Sara Silver, "Inside Track," Financial Times (London), December 2, 
2002, Monday London Edition 1, 14. 

Chapter 9 Twenty-jive Best Practices for Doing the Most Qood for 
the Company and the Cause 

1. Michael E. Porter and Mark R. Kramer, "The Competitive Advan- 
tage of Corporate Philanthropy," Harvard Business Review, Decem- 
ber 2002, 5. 

2. Ibid. 

3. Philip Kotler and Nancy Lee, "Best of Breed: When It Comes to 
Gaining a Market Edge While Supporting a Social Cause, 'Corpo- 
rate Social Marketing' Leads the Pack," Stanford Social Innovation 
Review, 1, no. 4 (2004): 18. 

4- Philip Kotler and Gary Armstrong, Principles of Marketing, 9th Edi- 
tion (Upper Saddle River: Prentice Hall, 2001), 514-515. 

5. Ben & Jerry's News Release, August 1, 2002 (Newstream), Ben & 
Jerry's and Native Energy Partner to Fight Global Warming: Ice 
Cream Maker to Help Cool Planet with Wind http://www.ben 
.html (accessed July 15, 2004) 



6. Fannie Mae Foundation, We Walk Together: A Report on the First 
15 Years of Fannie Mae Foundation's Help The Homeless Program, 
2003, Foreword. 

7. Curt Weeden, Corporate Social Investing (San Francisco: Berrett- 
Koehler Publishers, Inc., 1998), 68. 

8. Committee to Encourage Corporate Philanthropy, "The Cor- 
porate Giving Standard: A Measurement Model for Corporate 
Philanthropy" (accessed April 

9. Kenneth Cole, Footnotes (New York: Simon and Schuster, 2003), 

Chapter 10 A Marketing Approach to Winning Corporate 
Funding and Support for Social Initiatives: 
Ten Recommendations 

1. Bill Shore, Revolution of the Heart, (New York: Riverhead Books, 
1995), 118. 

2. Samantha Coker, "Corporate/NGO Alliances: Engaging Corpora- 
tions in Corporate Social Responsibility Initiatives" Seattle Univer- 
sity, Summary Project, 2003. 

3. American Cancer Society, "ACS Mission Statement," http://www 
.asp (accessed April 21, 2004). 

4- The Nature Conservancy, "How We Work: Initiatives," http: 
//nature. org/initiatives/ (accessed April 21, 2004). 

5. Boys & Girls Club of America, "Programs: Specialized Initiatives," (accessed April 21, 

6. AT&T Wireless, "Media Relations: About Us," 
xom/our_company/ (accessed April 21, 2004). 

7. Avon Products, Inc., "Mark: Makeup You Can Buy And Sell," = 
PRESSRELEASE2&page= 1 (accessed April 21, 2004). 

8. American Legacy Foundation, "Press Release July 16, 2003: New 
Research on Young Women and Smoking: Two-thirds Want to Quit, 
but Only Three Percent Succeed." (Preliminary data as of January 



2003.) http : / / www. AmericanLegacy/ skins/alf/ 
display.aspx?moduleid = 8cde2e88-3052-448c-893d-dOb4b 
1 4b3 1 c4&mode =User&action=display_page&Obj ectID= 8f35 6b23 - 
6e2-4cde-925d-63656772acb5 (accessed April 21, 2004). 
9. Ibid. 

10. Town Topics® Princeton's Weekly Community Newspaper since 1946, 
December 3, 2003, 
(accessed July 16, 2004). 


Affinity card programs, 87-89 

Africa, 213-214, 215 

Against Animal Testing campaign, 68-71 

Albertson's, 147 

Alcoa, 15 

Aleve, 23, 58-59 

Allen, Robert, 15-16 

Allocating resources for evaluation, 256 

Altria Group, 15, 147 

American Cancer Society, 264 

American Express: 

corporate philanthropy of, 147, 150 

norms, establishment of, 6 

September 11 and, 105-106 

social responsibility and, 15 

Statue of Liberty and, 13, 82, 87, 

American Heart Association, 120 
American Legacy Foundation, 91-93, 

270-271, 275 
American Lung Association, 88 
American Red Cross, 190 
America's Second Harvest, 4, 150-151 
Antibiotic treatment, 125-127 
Appeal to investors and financial analysts, 

increasing, 17-18 
Apple Computer, 150 
Approaching corporation about support 

for issue, 266-268 
Arthritis Foundation, 58-59 
Athena Water, 108-110 
AT&T Broadband/Comcast, 98-100 
Attention to issue, drawing, 152-153 
AT&T Foundation, 8, 15-16 
AT&T Wireless, 189-190, 191 

Australia, 188-189 
Avon Breast Cancer Crusade, 83, 84, 

Avon Future, 270-271, 275 

Awareness and concern, building, 51, 236 

Back to Sleep campaign, 121-122 
Behavior change and corporate social 

marketing, 114-115, 131, 141-142, 


Bellevue Community College, 167-169 

of cause promotions, 52, 55-66 

of cause-related marketing, 84, 87-100 

of community volunteering, 178, 

of corporate philanthropy, 147, 

of corporate social marketing, 119-130 
overview of, 236-237, 242-243 
of socially responsible business 
practices, 211, 213-220 

Ben & Jerry's: 

corporate philanthropy of, 14 
global warming and, 55-56 
green@<work magazine and, 228, 229 

Best Buy, 122-124, 147 

Best practices: 

for choosing social problem, 238-241 
for developing programs, 247-25 1 
for evaluation, 252-256 
for selecting initiative to support cause, 

241, 244-247 
summary of, 256, 259-261 

Body Shop, The, 17,23,68-71 




Boys & Girls Clubs of America, 133, 

BP, 15 

Brand identity, building positive, 97-100 

Brand positioning: 

cause promotions and, 52, 55-56 
corporate philanthropy and, 156-158 
corporate social marketing and, 

socially responsible business practices 

and, 219-220, 232 
strengthening, 13-14 
Brand preference with target markets, 

cause promotions and, 58-59 
corporate social marketing and, 


socially responsible business practices 

and, 214-216 
British Airways, 60-61 
Business Ethics (magazine), 15 
Business for Social Responsibility, 3, 


Campaign plan, developing: 
best practices for, 247-251 
for cause promotions, 78-79 
for cause-related marketing, 111-112 
for community volunteering, 201, 

for corporate philanthropy, 172-173 
for corporate social marketing, 141-143 
overview of, 20 

for socially responsible business 

practices, 233 
See also Communication plan, 
developing; Implementation plan 
Cantalupo, Jim, 37-38 
Cash donations, 146 
Castells-Heard, Liz, 98 

commitment to, 241, 255-256 
long-term support for, 241, 255-256 
selecting multiple initiatives for, 

See also Issue 

Cause promotions: 
of Aleve, 58-59 
benefits of, 52, 55-66, 242-243 
of Ben & Jerry's, 55-56 
of The Body Shop, 68-71 
of British Airways, 60-61 
campaign plan, developing for, 78-79 
considerations for, 77-78 
of Dell, Inc., 33,35 
description of, 23, 49-51 
examples of, 53-54 
of Johnson & Johnson, 71-74 
keys to success of, 68-77 
of LensCrafters, 74-77 
of McDonald's, 38 
of Nordstrom, 64-66 
of PARADE magazine, 63-64 
of PETsMART, 56-57 
potential concerns with, 66-68, 248, 

strengths to maximize, 257 
types of, 51-52 
of Wal-Mart, 61-62 
of Washington Mutual, 25, 27-28 
Cause-related marketing (CRM): 
of American Express, 105-108 
of Athena Water, 108-110 
of Avon, 89-91 
beneficiaries of, 84 
benefits of, 84, 87-100, 242-243 
campaign plan, developing for, 1 1 1-112 
of Comcast, 97-100 
considerations for, 111 
of Dell, Inc., 35-36 
description of, 23, 81-82 
keys to success of, 101-1 10 
ofLysol, 93-95 
of McDonald's, 38, 40-41 
of Northwest Airlines, 102-105 
potential concerns with, 100-101, 248, 

of QVC, 91-93 

strengths to maximize, 257 

of Target, 96-97 

types of, 83-84, 85-86 

of Washington Mutual, 28, 29 



Centers for Disease Control and 

Prevention (CDC), 120 
Challenges to doing good: 
evaluation, 21 

initiative to address issue, selecting, 

program plan, developing and 
implementing, 20 

social issue, choosing, 18-19 
Change for Good program, 60-6 1 
Chicanos Por La Causa, 139 
Child care center initiative, 167-169 
Children, marketing to, 210 
Children's Miracle Network, 61-62 
Chiquita, 208, 228-231 
Chlorofluorocarbons (CFCs), 217 

initiative to support cause, 241, 

social problem, 238-241 
Cisco Systems, 17, 147, 213 
Citibank, 88 

Classroom Presentations program, 31-32 
Clout, improving, 14-16 
Co-branding, 66-67 
Coca-Cola, 209, 213-214, 215 
Coffee and conservation, 223-225 
Comcast Cable, 23, 97-100 
Commitment to cause, 241, 255-256 
Committee to Encourage Corporate 

Philanthropy, 173 
Communication plan, developing: 

for community volunteering, 203-204 

for corporate philanthropy, 173 

overview of, 250 
Communications, persuasive, 49-50, 52 
Community volunteering: 

of AT&T Wireless, 189-190, 191 

benefits of, 178, 180-190, 242-243 

campaign plan, developing for, 203-204 

considerations for, 202 

of Dell, Inc., 36-37 

description of, 24, 175-176 

of Fannie Mae, 186-187 

of FedEx, 184-185 

of Ford Motor Company, 180-181 

of Hewlett-Packard, 181-184 
of IBM, 196-198 
keys to success of, 192-202 
of Levi Strauss & Co., 199-202 
of McDonald's, 43-44 
potential concerns of, 190-192, 248, 

of Shell Australia, 188-189 

strengths to maximize, 258 

ofTimberland, 192-196 

types of, 176-178 

of Washington Mutual, 31-32 
Compack system, 217 
Computer literacy initiative, 164-166 
ConAgra Foods, 4, 150-151 
Concerns to minimize: 

for cause promotions, 66-68, 248, 

for cause-related marketing, 100-101, 
248, 257 

for community volunteering, 190-192, 
248, 258 

for corporate philanthropy, 162-163, 

for corporate social marketing, 

130-132, 248, 257 
for socially responsible business 
practices, 220-222, 248, 258 
Cone/Roper tracking studies, 5, 11-12, 16 

coffee and, 223-225 
of energy, 17,37, 213, 220, 221 
of water, 137-140 
See also Recycling 
Conservation International, 223-225 
Conservation Volunteers Australia, 

Considerations for implementing: 
cause promotions, 77-78 
cause-related marketing, 111 
community volunteering, 202 
corporate philanthropy, 172 
corporate social marketing, 140-141 
socially responsible business practices, 

Constituent groups, 240 




cause-related marketing and, 82, 101 
corporate social marketing and, 

global marketplace and, 208 
socially responsible business practices 

and, 221-222 

asking for, 262-276 
in-kind, 4, 9, 160-162 
nonmonetary resources, 263 
persuading people to make, 51, 60-61 
recognizing corporation for, 274-275 
requests for, 67 
Contribution to goals, see Goals, 

contributing to 
Cook, Sunny Kobe, 144 
Corporate philanthropy: 

benefits of, 147, 150-162, 242-243 

campaign plan, developing for, 172-173 

of ConAgra Foods, 150-151 

considerations for, 172 

of Costco Wholesale, 166-169 

of Dell, Inc., 36 

description of, 23-24, 144-145 

of GE Consumer Products, 152-153 

of General Mills, 159-160 

of Kenneth Cole Productions, Inc., 

keys to success of, 163-172 
of McDonald's, 41-43 
of Microsoft, 163-166 
of New York Times Company 

Foundation, 154-156 
potential concerns of, 162-163, 248, 


of Recreational Equipment Inc. (REI), 

strengths to maximize, 258 
types of, 145-147, 148-149 
of Washington Mutual, 3 1 
Corporate social initiatives: 
causes supported through, 3-4 
definition of, 3 
of Dell, Inc., 34 
of McDonald's, 39 

options for, 22-24 
overview of, 46-48 
of Washington Mutual, 24-33 
Corporate social marketing: 
benefits of, 119-130, 242-243 
of Best Buy, 122-124 
campaign plan, developing for, 

considerations for, 140-141 
of Crest, 132-134 
of Dell, Inc., 36 
description of, 23, 114-115 
of Dole, 127-128 
of Home Depot, 137-140 
issues focused on by, 115-119 
keys to success of, 132-140 
of Mustang Survival, 124-125 
of Pampers, 121-122 
potential concerns of, 130-132, 248, 


of Premera Blue Cross, 125-127 
of Safeco, 134-137 
of 7-Eleven, 129-130 
strengths to maximize, 257 
of Subway, 119-120 
of Washington Mutual, 28, 30-3 1 
Corporate social responsibility, definition 
of, 3 

Costco Wholesale, 166-169 
Council on Economic Priorities, 14 
Creative brief, 78-79 
Crest Health Smiles 2010 initiative, 

Criticism of social marketing, 131 
CRM, see Cause-related marketing 


appeal to, 265 

attracting new, 87-89 

exchange process and, 262-263 

loyalty of, building, 56-57 

Dave Matthews Band, 55 

Dell, Inc.: 

cause promotions of, 33, 35 
cause-related marketing of, 35-36 



community volunteering by, 36-37 
corporate philanthropy of, 36 
corporate social initiatives of, 34 
corporate social marketing of, 36 
description of, 33 
norm, establishment of, 6 
socially responsible business practices 
of, 37 
Dell, Michael, 33 
Demos, Steve, 220 
Developing plan, see Campaign plan, 
developing; Communication plan, 
Direct contribution, see Corporate 

Disabled populations, access for, 210 
Disclosure, expectations of, 209, 210 web site, 72-73 
Disney VoluntEARS, 204 
Dispersion of effort, 191 
Dole Food Company, 127-128 
Donations, persuading people to make, 51, 

Don't Mess With Texas campaign, 

Dreyer's, 19 

Drowning prevention campaign, 124-125 
DuPont, 147 

Earth Share, 36 
Earthwatch Australia, 189 

attracting, motivating, and retaining, 
16, 184-185, 209, 237 

cause promotions and, 61-62 

corporate philanthropy and, 171 

social issues and, 265-266 

well-being and satisfaction of, 218-219, 

See also Community volunteering 
Energy conservation: 
Cisco and, 17, 213 
EPA and, 37 

wind power and, 220, 221 
Environmental responsibility, 215-216 
Environmental volunteering, 178 


assistance with, 274 

best practices for, 252-256 

as challenge, 21 

community volunteering and, 198 
corporate social marketing and, 142 
importance of, 10 
outcomes, measuring, 249-250, 

253-255, 274 
purpose of, determining, 252 
See also Tracking investment and return 
Exchange process, customer-oriented 

approach to, 262-263 
Expense of community volunteering, 191, 


Experience and selecting initiatives, 

Expertise, clinical and technical: 
corporate social marketing and, 

providing, 146 
Exxon Mobil, 147 
Exxon Valdez oil spill, 7-8 

Facility design, 209 
Fannie Mae, 6, 15, 186-187 
FedEx, 184-185 

Feeding Children Better initiative, 

Financial analysts, appeal to, increasing, 

Financial incentives, 232 

Financial institutions and affinity card 

programs, 87-89 
Fine, Deborah, 271, 275 
Fiorina, Carly, 1, 181-182, 183 
Firestone Tire & Service Centers, 23 
5 A Day program, 127-128 
Ford Motor Company, 6, 147, 180-181 
Fortune Brands, 15 
Fortune (magazine), 14-15 
Friedman, Milton, The Social Responsibility 

of Business Is to Increase Profits, 182 
Full disclosure, expectations of, 209, 


Fund-raising for cause, 89-91, 236 



GE Consumer Products, 152-153 
General Mills, 159-160 
General Motors, 161-162 
Gift of Sight initiatives, 74-77 
Giving, as increasing trend, 4-5 
Global Environmental Council of 

McDonald's, 45-46 
Goals, contributing to: 

choosing social problem and, 239-240 
community volunteering and, 181-184 
examples of, 237 
selecting initiatives and, 244 
Goals, establishing, 249-250 
Good, definition of, 2-4, 236. See also 

Reasons for doing good 
Goodwill in community, creating: 

corporate philanthropy and, 152-153 
socially responsible business practices 
and, 213-214 
Grants, 146, 159-160, 170-172 
Great American Bake Sale, 63 
Great American Cleanup, 93-95 
green@work magazine, 228, 229 
Guidelines, corporate, developing, 

Habitat for Humanity, 1 80 
Health- and safety-related projects: 

Intel and, 219 

volunteering for, 178 
Healton, Cheryl, 93 
Hewlett-Packard, 6-7, 15, 181-184 
High School Intern Program, 32-33 

Coca-Cola and, 213-214, 215 

Levi Strauss & Co. and, 199-202 
Home Depot, 137-140 
Howell, Park, 137 

IBM, 15, 196-198 
i-community program, 182-183 

corporations connected to issue, 

needs, 233, 244 

strategic elements, 250-251 

Identity of brand, building positive, 

Image, improving: 

cause promotions and, 64-66 
community volunteering and, 188-189 
overview of, 14-16 
Immunize for Healthy Lives program, 41, 

Implementation plan: 

for community volunteering, 201-202 
for corporate social marketing, 

developing, 272-273 

for socially responsible business 

practices, 233 
See also Considerations for 
Improving image, see Image, improving 
India, 182-183 

Industry, strengthening, 154-156 

Initiative to address issue, selecting: 
best practices for, 241, 244-247 
for cause-related marketing, 112, 113 
overview of, 19-20 

In-kind contributions, 4, 9, 160-162 

Intel, 219 

Investor appeal, increasing, 17-18, 208 

administrative legwork and, 273-274 
approaching corporation for support for, 

business needs and, 268-269 
choosing, 18-19, 238-241 
community volunteering and, 201 
corporate philanthropy and, 172 
corporate social marketing and, 

115-116, 119 
corporations related to, identifying, 

developing list of, 263-265 
finding good match, 130-131 
implementation plan, developing, 


initiative to address, selecting, 19-20, 

112, 113, 241, 244-247 
monitoring status of, 255-256 



proposal, submitting to corporation, 

recognizing contribution to, 274-275 
sharing information about, 269-271 
See also Cause 

Johnson & Johnson's Campaign for 

Nursing's Future initiative, 71-74 
Journalism, support for, 154-156 
J.P. Morgan Chase, 147 

Keep America Beautiful, 93-95 
Kellogg, 6 

Kenneth Cole Productions, Inc., 156-158, 

Killinger, Kerry, 22 
Kraft Foods: 

global obesity initiative of, 226-228 
socially responsible business practices 
of, 24, 208, 209 

Learn more, persuading people to, 51 
Legal issues, 100, 112 
LensCrafters' Give the Gift of Sight 

initiative, 74-77 
Leveraging current efforts and 

investments, 237, 246-247 
Levi Strauss & Co., 199-202 
Lincoln, Rose, 135 
Litow, Stanley S., 196 
Litter prevention campaign, 129-130 
Local communities, impact on, 158-160, 


Long term, supporting cause over, 241, 

Loyalty, customer, building, 56-57 
Lysol, 23, 84, 93-95 

Management buy-in, obtaining, 251 
Marketing, see Cause-related marketing 

(CRM); Corporate social marketing 
Marketing model of social issues, 264-265 
Marketing plan, 112, 142 
Market share, increasing, 11-13 
Materials for manufacturing and 

packaging, choosing, 210 

Maxwell, David O., 187 

May, Trish, 108 

McDonald's Corporation: 
cause promotions of, 38 
cause-related marketing of, 38, 

community volunteering of, 43-44 
corporate philanthropy of, 41-43 
corporate social initiatives of, 39 
description of, 37-38 
on evaluation, 21 
Happy Meal, 208 
norm, establishment of, 7 
socially responsible business practices 
of, 44-46 

South Central Los Angeles riots and, 


allocating resources for, 256 
outcomes, 249-250, 253-255, 274 
resource outputs, 252-253 

MetLife, 147 

Microsoft, 163-166, 264 

Mission of business, 239, 265 

Monitoring status of issues, 

Moore, Charles, 173 

Moral marketplace factor, 8 

Motorola, 207, 217-218 

Mustang Survival, 124-125 

National Cancer Institute, 127-128 

National Cristina Foundation, 35 

Nature Conservancy, 264 

Needs, identifying, 233, 244 

Newman, Paul, 108 

Newman's Own products, 83 

New York Times Company Foundation, 4, 

Niche markets, reaching, 91-93 
Nike, 7, 215-216 

Noncash contributions, see In-kind 

Nonmonetary resources, 263 
Nordstrom, 64-66 
Norms, establishment of, 5-7 



North Carolina's Heart Disease and 
Stroke Prevention Task Force, 
Northwest Airlines, 83, 102-105 
Nursing promotion initiative, 71-74 

Obesity prevention initiative, 226-228 
Objectives, establishing, 249-250. See also 

Goals, contributing to 
Obligation, fulfilling, 8-9 
Olympic Youth Camp, 38 
On Demand Community program, 

Operating costs, decreasing: 

best practices for, 237 

overview of, 17 

socially responsible business practices 

and, 211,213, 232 
Oral health campaign, 132-134 
Outcomes, measuring, 249-250, 253-255, 


Pampers, 23, 121-122 
Parade magazine, 62-64 
Participate, persuading people to, 52, 

60-61, 236 

Aleve and Arthritis Foundation, 


British Airways and UNICEF, 

cause promotions and, 62-64 
cause-related marketing and, 95-97, 

corporate philanthropy and, 1 73 
corporate social marketing and, 116, 

119, 127-128 
natural, discovering, 263-265 
with NGOs, 225 
Parade magazine and Share Our Strength, 


plan development and, 249 
selecting initiatives and, 245-246 
socially responsible business practices 
and, 216-218 
PepsiCo, 23 

PETsMART Charities, 56, 68 
Philanthropy, see Corporate 

Philip Morris, 20 
Pink ribbon products, 91 
Plan, see Campaign plan, developing; 
Communication plan, developing; 
Implementation plan 
Positioning of brand: 

cause promotions and, 52, 55-56 
corporate philanthropy and, 156-158 
corporate social marketing and, 

socially responsible business practices 

and, 219-220, 232 
strengthening, 13-14 
Preference for brand with target markets, 

cause promotions and, 58-59 
corporate social marketing and, 


socially responsible business practices 
and, 214-216 
Premera Blue Cross, 125-127 
Privacy protection, 210 
Process improvements, 209-210 
Procter & Gamble, 15 

connection to, 265 

differentiation of, 232 

discontinuing, 210 

donating, 146 

issue, choosing, and, 239 

quality or performance of, improving, 

showcasing, 189-190 

improving through reducing costs, 

increasing, 208 
Program plan, see Campaign plan, 

Projects in community, volunteering for, 
177. See also Community 
Promotions, see Cause promotions 



Proposal, submitting to corporation, 

Publicizing efforts, 162-163, 192, 195 

QVC, 91-93 

RadioShack, 122 
Rainforest Alliance, 230-23 1 
Raising funds for cause, 89-91. See also 

Reasons for doing good: 

appeal to investors and financial 

analysts, increasing, 17-18 
brand position, strengthening, 13-14, 
55-56, 119-120, 156-158, 219-220 
corporate image and clout, improving, 

14-16, 64-66, 188-189 
employees, attracting, motivating, and 
retaining, 16, 184-185, 209, 

operating costs, decreasing, 17, 211, 

213, 232, 237 
overview of, 10-1 1 
sales and market share, increasing, 


Recognition programs, 203 
Recreational Equipment Inc. (REI), 


of electronic equipment, 123-124 

of eyeglasses, 74 

of greeting cards, 180-181 

by McDonald's, 44-46 

of shoes, 215, 216 

of solid waste, 2 1 7-2 1 8 

of used computer equipment, 33, 
Red Brick Learning, 97 
Regulatory oversight, reducing, 216-218, 

Relationships in community, building, 
178, 180-181,237 

Replication of promotions, 68 


allocating resources for, 256 

on corporate responsibility, 5, 14-16 

outcomes, 253-255 

resource outputs, 252-253 
Reputation, building, 150-151, 236 
Requests for contributions, 67 
Research techniques, 266 
Resource outputs, measuring and 

reporting, 252-253 
Return, see Tracking investment and 

Ritter, John, 63 
Roddick, Anita, 17,69 
Ronald McDonald House Charities, 

41- 43, 97-100 

Ronald McDonald House program, 

42- 43 

Rotary International, 88-89 

Safeco, 134-137 

Safe driving initiative, 161-162 

SAFE KIDS Walk This Way, 185 

Salerno, Mary Beth, 81 

Sales, increasing: 

cause-related marketing and, 81-82, 

corporate social marketing and, 

overview of, 11-13 
Salt River Project, 138 
Satcher, David, 114, 55 
Scholarships, 146 

School Fundraising program, 96-97 
School Savings program, 28, 30-31 
Scrutiny and socially responsible business 

practices, 216-217 
Senior management buy- in, obtaining, 


September 11: 

American Express and, 105-106 

McDonald's and, 44 

trends since, 11-12, 16 

donating, 146, 263 

issue, choosing, and, 239 

showcasing, 189-190 

See also In-kind contributions 



7-Eleven, Inc., 129-130 
Shade Grown Mexico coffee, 

Share Our Strength, 62-64 
Sharing information about social issues 

with corporation, 269-271 
Shell, 24 

Shell Australia, 188-189 
Shore, Bill, 262 

Situation assessment phase of campaign 

development, 112, 141 
Smith, Craig, "The New Corporate 

Philanthropy," 7-8,9, 15-16 
Social change, impact on, 129-130 
Social content, 13-14 
Social issue, see Issue 
Socially responsible business 

benefits of, 211, 213-220, 

campaign plan, developing for, 


of Chiquita, 228-231 
of Cisco Systems, 213 
of Coca-Cola, 213-214, 215 
considerations for, 231-232 
of Dell, Inc., 37 
description of, 24, 208-209 
of Intel, 219 

keys to success of, 223-231 
of Kraft Foods, 226-228 
of McDonald's, 44-46 
of Motorola, 217-218 
of Nike, 215-216 

potential concerns of, 220-222, 248, 

of Starbucks, 223-225 

strengths to maximize, 258 

types of, 209-211,212 

of Washington Mutual, 32-33 

of White Wave, 220, 221 
Social marketing, see Corporate social 

St. Judes Ranch for Children, 

St. Paul Companies, 15 


Conservation International and, 24, 

corporate social initiatives, 47 
Report on Corporate Social Responsibility, 


Strategic elements, identifying and 

planning for, 250-251 
Strategy, shift from obligation to, 7-8, 

Subway, 119-120 
Success, keys to: 

cause promotions, 68-77 
cause-related marketing, 101-110 
community volunteering, 192-202 
corporate philanthropy, 163-172 
corporate social marketing, 132-140 
socially responsible business practices, 

Sudden Infant Death Syndrome (SIDS), 


improving relationships with, 232 

selecting, 210 

corporate objectives and, 9-10 

for marketing objectives, 237 

for other corporate initiatives, 

over long term, 241, 255-256 

types of, 4 
Swartz, Jeffrey, 175 

Synergy with mission, values, products, 
and services, 239 

Target audience, selecting, 141 
Target Stores, 96-97, 147 
Teacher recruitment, 25, 27-28 
Teams and plan development, 247, 

Terminology, 47 

Timberland, 16, 192-196 

Tobacco industry, 270-271 

Tracking investment and return: 
cause promotions and, 67 
cause-related marketing and, 100 



community volunteering and, 191, 204 
corporate philanthropy and, 163, 173 
corporate social marketing, 142 
socially responsible business practices 

and, 233 
See also Evaluation 

Traditional approach, 8-9 

Traffic, building: 

cause promotions and, 56-57 
corporate social marketing and, 

Trends in corporate social responsibility, 

Tribeca Film Festival, 106 

United Nations Children's Fund 

(UNICEF), 60-61 
United Parcel Service, 15 
United Way, 184-185 
U.S. Environmental Protection Agency, 


Vaccinations, 41, 42 
Visa USA, 88 

Visibility issues, 66-67, 162-163, 192 
Volunteering in community, see 

Community volunteering 
Vulcan Materials, 15 

Wal-Mart Foundation, 61-62 
WaMoola for Schools program, 28, 29 

Washington Mutual, Inc. (WaMu): 
cause promotions of, 25, 27-28 
cause-related marketing of, 28, 29 
community volunteering by, 

corporate philanthropy of, 3 1 
corporate social initiatives of, 26 
corporate social marketing of, 28, 

description of, 24-25 
rating by Fortune magazine of, 15 
socially responsible business practices 
of, 32-33 
Water conservation campaign, 

Watson, Thomas J., Sr., 196 
Wells Fargo, 83 
White Wave, 220, 221 
Wildfire defense and mitigation 

initiative, 135-137 
Windermere Real Estate, 83 
Wind power, 220, 221 
Working Assets, 88 

World Business Council for Sustainable 

Development, 3 
World Children's Day, 38, 40-41 
World Wildlife Federation, 88 

Yellowstone Park, 152-153 
Yoplait, 83 

Your Money Matters classes, 32